You might want to check out the work of Wade Pfau. He's done lots of analysis comparing various withdrawal strategies, all very quantitative but all cognizant of the various risks and assumptions needed.
Overall a useful tool, thanks.
I think the spending suggestions - 4 - 5% of assets is too high. Those work for historical data but as we know, we don't drive looking backwards. In todays environment of high stock prices and low bond yeilds (though getting better!), I personally am using <3% annual spend rate of assets, with a 50/50 balance equity/bond. So my suggestion is to be a bit more conservative in your recommendations. Or add the caveat that your 4% recommendation is based on a 50% probability of running out of money before you die (or whatever the correct figure is).
Comments
You might want to check out the work of Wade Pfau. He's done lots of analysis comparing various withdrawal strategies, all very quantitative but all cognizant of the various risks and assumptions needed.
Post: About the Checkup
Link to comment from August 11, 2022
Overall a useful tool, thanks. I think the spending suggestions - 4 - 5% of assets is too high. Those work for historical data but as we know, we don't drive looking backwards. In todays environment of high stock prices and low bond yeilds (though getting better!), I personally am using <3% annual spend rate of assets, with a 50/50 balance equity/bond. So my suggestion is to be a bit more conservative in your recommendations. Or add the caveat that your 4% recommendation is based on a 50% probability of running out of money before you die (or whatever the correct figure is).
Post: About the Checkup
Link to comment from August 10, 2022