Cut-Throat
Thinks s/he gets paid by the post
One can see that the spending was down to 57% of the first year's spending in 1975, 7 years after retirement. Also the real portfolio balance was more then cut in half ... scary boots!
This sequence actually gave another 57% spending year in 1982.
Yes, this is pretty much the 'Worst case' Historical' Period of U.S. Markets and Inflation was the main Culprit!
When you look at the nominal numbers, the decline was not that bad. I remember running a Budget during those times and while prices were increasing, we adjusted our shopping basket to 'smooth out' things. Housing Prices were rising the most dramatically. We were renting at that time, but rent prices were a little more stable. Certain Food Prices were also skyrocketing. Gas Prices were rising steeply. Going all the way to 75 cents a Gallon!
But, if you run VPW and your initial withdrawal rate is over 100% higher like your example of 6.3% than a 'Conservative' 3% That you often see stated here. a Decline of 57% would be 'No Big Deal'.....Just keep things in Perspective!
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