Join Early Retirement Today
Thread Tools Search this Thread Display Modes
Add Int'l equities to FireCalc = increased SWR's?
Old 02-25-2004, 07:54 PM   #1
Recycles dryer sheets
Join Date: Jun 2002
Posts: 374
Add Int'l equities to FireCalc = increased SWR's?


I've spent a bit of time browsing Les Antman's excellent personal finance forums and have come to the conclusion that splitting my equity portfolio 50/50 US Total Mkt & Total Int'l via low-cost index funds is the way to go.

I know that there have been many suggestions for adding various features to the FireCalc SWR machine, but I suspect that we might see a meaningful increase in SWR's if we were able to add in various amounts of international equites. I also know that a frequently cited difficulty with evaluating international equities from a historical perspective is the dearth of solid data prior to 1970 or so.

I mentioned this in a thread on Les' Retirement Forum, but he countered that accurate longer term (~100 years) of international equity returns data is available:

Is there any chance you could have a look into the practicality of including an International index in FireCalc? In other threads Les points out that a US investor in 1929, if he had split his porfolio 50/50, would have been "whole" within 5 years (allowing for deflation). Same deal with a Japanese investor in 1990. My guess is that a 50/50 allocation might have improved SWR's in the troublesome period in the 1960's as well.

Your thoughts?


Cb is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Add Int'l equities to FireCalc = increased SWR
Old 02-26-2004, 02:49 AM   #2 Founder
Developer of FIRECalc
dory36's Avatar
Join Date: Jun 2002
Posts: 1,828
Re: Add Int'l equities to FireCalc = increased SWR

You have a very good point - added types of investments would allow fine tuning of portfolios and perhaps a starting retirement strategy with an increased withdrawal.

As Less Antman points out in the link you provided, data on the international markets can be purchased. But as he also points out, a free calculator such as Firecalc needs to use free data.

I looked into buying data several years ago. I don't even recall the various places I looked, but generally, the price correlated with the quality of the data, charging either on a per-use basis or on an annual basis, with prices appropriate to their intended customer base -- the research departments of mutual funds and brokerage houses I guess.

My inquiries asking them to please give it to me free were not answered in most cases. (I don't know why not. All I wanted to do was to give the results away so we could stop paying THEIR customers for the service...)

One data provider assumed I was doing written reports for clients, and said they would charge $45 each time I used their data for a report.

So at this point, I don't see adding additional asset classes.


Often uninformed, seldom undecided.

Twenty years from now you will be more disappointed by the things you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover. Mark Twain
dory36 is offline   Reply With Quote
Re: Add Int'l equities to FireCalc = increased SWR
Old 02-26-2004, 03:36 AM   #3
Recycles dryer sheets
Join Date: Jun 2002
Posts: 374
Re: Add Int'l equities to FireCalc = increased SWR

Wow! ...I don't blame you one little bit.

I think I'll try contacting the prof's Les mentions. They also recently published a draft of a paper that's generated a fair amount of discussion on the ER boards in which they suggest that future returns will likely be lower. Maybe they'll be a bit more generous with the worldwide returns data they've compiled.

Cb is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Firecalc slays a strawman, deceives many hankjoy FIRE and Money 46 11-30-2010 04:14 PM
FIRECalc data dumps or saved runs for referencing during posts? Nords FIRECalc support 6 01-25-2007 07:09 AM
Firecalc and SWR's Markedward FIRE and Money 16 06-15-2006 03:46 PM
Scott Burns - SWRs and Int'l Diversification intercst FIRE and Money 23 07-10-2004 03:08 PM

» Quick Links

All times are GMT -6. The time now is 07:19 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2020, vBulletin Solutions, Inc.