No mention of SWR

[jIMOh]

Ask the Expert - Money Magazine Can you retire by 55? «

Is he really an expert? I think the person asking the question would be better of asking here? What do you think?

 

[jclarksnakes]

I think it is a pretty good article. Perhaps he should have mentioned SWR and asset allocation. I have never used that Fidelity retirement income planner (linked in the article) but I would bet that it makes it's numbers up based upon what it thinks is a good SWR for whatever portfolio information the individual plugs into it. Many of us here like to think in terms of an SWR around 4%. That is fine US with our deversified portfolios. What about the individual who is deathly afraid of the market and has every penny invested in MM accounts? Seems like a really lousy financial plan and it results in an estimated SWR far below 4%.
Jeff

 

[youbet]

I agree, good article. Given the sketchy information given, the answer is appropriate........ suggestions for further reading, research, references and a little pat on the back that they're off to a good start.

jclarksnakes...... agree with your observation that throwing the rule of thumb 4% SWR around can be dangerous. That number implies a pretty specific set of investment circumstances that need to be understood before taking it to the bank!