Originally Posted by racy
That's known as the probability-based method of retiree income. There's another method called safety-based. Wade Pfau compares/contrasts them in this table:
Retirement Researcher Blog
Probability works if you want to predict something for a population. I know exactly what the pattern of electrons beyond 2 slits will be, but I can't tell you where a particular electrom will end up. This is why I look skeptically at the current dogma of probability based methods when planning my own specific retirement. As I said probability works for insurance companies and governments who deal with sample sizes greater than one.
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent