donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
On my portfolio spread sheet I run several SWR calculations including the standard initial percent plus inflation, a couple of flat % of portfolios, Guyton, etc. I have consistently taken out less than the smallest of the options but I like looking at things and calculating where would we be now if we did "x" or "y." In any event, one of the calculations I run is the Schiller PE/10 method. The basic idea is that you divide 1 by the Schiller PE/10 to arrive at a safe withdrawal amount. I use the more conservative .83/PE10 because several "authorities" describe it as a better approach. It has been fun to watch my portfolio drop with the DOW and the Schiller SWR go up. At COB today it went up to 4.29% (5% if you use 1). The idea, of course, is that if you are beginning retirement today the market is statistically poised for a good starting run. I haven't withdrawn anything close to 4% but it is nice to see Schiller data encouraging me to smile.