Independent
Thinks s/he gets paid by the post
- Joined
- Oct 28, 2006
- Messages
- 4,629
I trust FIREcalc to tell me whether my plan would have worked in the past. I don't trust FIREcalc to tell me whether my plan will work in the future, though I think it gives me a good reference point.
I'll take a weak version of this. Note that FIREcalc does not recognize the market value loss on bonds - that was a big deal for people who were retired when rates were going up.
Also, there are only two non-overlapping 30 year periods since WWII, so you have to decide how much credibility to give historic results.
That said, I'm sure that FIREcalc and its relatives have done a great public service by keeping people from blindly assuming that they can invest in stocks and withdraw 6% or 8% per year without invading principal.