REWahoo
Give me a museum and I'll fill it. (Picasso) Give
A recently published Vanguard article looks at three withdrawal strategies:
I thought it was interesting that in testing each of the three strategies "10,000 times", Vanguard used something new to me: VCMM
It should not come as a surprise that the hybrid model "wins"...
Vanguard study looks at ways to spend retirement savings
Those of you familiar with "the 95% Rule" spending model in FIRECalc (from Bob Clyatt's book, Work Less, Spend More) will note the similarity to the hybrid model.... dollar amount grown by inflation, percentage of portfolio, and percentage of portfolio with ceiling and floor, the hybrid.
I thought it was interesting that in testing each of the three strategies "10,000 times", Vanguard used something new to me: VCMM
Sounds a bit like FIRECalc, eh?The VCMM is a proprietary financial simulation tool developed and maintained by Vanguard's primary investment research and advice teams. The model forecasts distributions of future returns for a wide array of broad asset classes. Those asset classes include U.S. and international equity markets, several maturities of the U.S. Treasury and corporate fixed income markets, international fixed income markets, U.S. money markets, commodities, and certain alternative investment strategies. At the core of the model are estimates of the dynamic statistical relationship between risk factors and asset returns, obtained from statistical analysis based on available monthly financial and economic data from as early as 1960.
It should not come as a surprise that the hybrid model "wins"...
Vanguard study looks at ways to spend retirement savings