newtoseattle
Recycles dryer sheets
I enjoy the firecalc calculator very much but have recently been getting some results I don't understand when I try to use the "random performance" under the "your portfolio" tab.
3% withdrawal for 40 years with 50/50 portfolio = 100%
If I change to the "random performance" - 3% inflation, 9% total returns and 10% standard deviation =90% success
I thought my inputs above should historically mimic a 50/50 portfolio?
The real reason I care is that I was trying to account for projected lower returns in the future (aka total returns around 6-7%) but then I get abysmal chance of success. Is it that scary or am I doing something wrong?
Thanks
3% withdrawal for 40 years with 50/50 portfolio = 100%
If I change to the "random performance" - 3% inflation, 9% total returns and 10% standard deviation =90% success
I thought my inputs above should historically mimic a 50/50 portfolio?
The real reason I care is that I was trying to account for projected lower returns in the future (aka total returns around 6-7%) but then I get abysmal chance of success. Is it that scary or am I doing something wrong?
Thanks