These pseudo-scientific assumptions about going broke in retirement are grossly overstated, in my view. Let’s be realistic. If you’ve been retired in the past several years during one of the most brutal stock markets in history and haven’t gone broke yet, you’re probably not going to.
The past 12 years have delivered some of the most gut-wrenching, volatile financial markets in decades. A severe bear market in equities started in 2000, accentuated by terrorist attacks on 9/11, finally hitting bottom in the fall of 2002. The market recovered by October 2007, only to take another downturn more severe than the first. Stock prices are not still back to their 1999 levels.
Good illustration, I wish he'd said something about variable withdrawals though
Note these withdrawls are not inflation adjusted.
I wonder if one of the folks here that also post on Boglehead's could ask him to do an inflation adjusted spread sheet? I would be very interested in seeing it.Note these withdrawls are not inflation adjusted.
Please ignore this. I read the whole post and it pretty much answered my question.I wonder if one of the folks here that also post on Boglehead's could ask him to do an inflation adjusted spread sheet? I would be very interested in seeing it.
Rick posts often over at the Bogleheads.
Pretty straightforward common sense stuff.
heh heh heh - not that as a Boglehead, I'm prejudiced or anything. .
Agile, mobile and hostile. God Looks After Drunkards, Fools and The United States of America, pssst - wellesley.
Don't you just love all that high tech stuff?
Vary those withdrawals baby!
10 years.. From the top of the tech bubble through the meltdown... the S&P 500 has reached its old high once and is not quite back to that level yet.
Anyone notice how the portfolios with more bonds turned out better in the illustration?
For the last 10 years, a tactical allocation for stocks would have probably turned out better.... assuming one followed a decent method and did not get consumed with fear (entry plan) or too greedy (exit plan).