DouglasRThompson
Confused about dryer sheets
- Joined
- Nov 23, 2007
- Messages
- 6
After reading Byb Clyatt's book, Work Less, Live More, there were two questions that I have about his Rational Investing Portfolio, and withdrawing a maximum of 4% of the portfolio's worth each year:
1. He states that during a "bad" year, you should only withdraw 95% of what you withdrew the previous year. What is a "bad" year? A certain percentage less than the 9.5% average expected return? No profit? Lost profits?
2. What if you have 2 bad years in a row; 3 bad years in a row; etc. Do you keep reducing the amount you withdrew by 5% in each successive bad year?
If you are already following this strategy, how is it going for you? (Okay, okay, I know--that was 3 questions).
Thanks for your opinions.
Be @ Peace,
Douglas
1. He states that during a "bad" year, you should only withdraw 95% of what you withdrew the previous year. What is a "bad" year? A certain percentage less than the 9.5% average expected return? No profit? Lost profits?
2. What if you have 2 bad years in a row; 3 bad years in a row; etc. Do you keep reducing the amount you withdrew by 5% in each successive bad year?
If you are already following this strategy, how is it going for you? (Okay, okay, I know--that was 3 questions).
Thanks for your opinions.
Be @ Peace,
Douglas