Isn't Firecalc and Monte Carlo simulations based on an average stock yield of around 10% or better. (historical numbers) I guess you could also include bonds in thqt same scenerio, as they also had a great run for a while. Also, stock losses were tempered somewhat due to over all much higher dividends paid out historically.
If it is, and if all predictions that the FUTURE ten years will see returns not higher than 7% at best, then those simulations would be very flawed for people trying to calculate their withdrawel rate. Is that not true?
If I am correct, wouldn't a new adjusted formula have to be applied for future sustainabillity of a portfolio?
If it is, and if all predictions that the FUTURE ten years will see returns not higher than 7% at best, then those simulations would be very flawed for people trying to calculate their withdrawel rate. Is that not true?
If I am correct, wouldn't a new adjusted formula have to be applied for future sustainabillity of a portfolio?