Onward
Thinks s/he gets paid by the post
- Joined
- Jul 1, 2009
- Messages
- 1,934
"ROOM" is his acronym for "Run Out Of Money." This is an interesting article about the effect of initial stock-market P/E on a retiree's SWR.
He doesn't say how his P/E is calculated. He doesn't consider anything other than an all-stock portfolio. He has a book called Probable Outcomes an apparently goes into further detail there.
Did you consider market P/E when you made your decision to retire?
Stay Out of the ROOM - John Mauldin's Outside the Box - InvestorsInsight.com | Financial Intelligence, Advice & Research / Investment Strategies & Planning for Individual Investors.
While the success rate for the entire group was 95%, for a retiree who enters retirement with a portfolio dedicated to stocks when P/E is 18.7 or higher, the expected success rate based upon history is 76%
He doesn't say how his P/E is calculated. He doesn't consider anything other than an all-stock portfolio. He has a book called Probable Outcomes an apparently goes into further detail there.
Did you consider market P/E when you made your decision to retire?
Stay Out of the ROOM - John Mauldin's Outside the Box - InvestorsInsight.com | Financial Intelligence, Advice & Research / Investment Strategies & Planning for Individual Investors.