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Author: hockeypop Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75383  
Subject: Re: Safe Withdrawal Rate Date: 10/11/2007 8:28 AM
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As much as I see SWR get pounded on these boards one has to know how much they can earn on the money they have at retirement before defining such a number. You could have a higher SWR if your money is earning 10% versus 3%.

No, you miss the point and it's an important one. SWR is a rate which is a worst case scenario over multiple years. So, over a 30 year period you WILL earn 10% at times, but you WILL also lose 10% SWR does NOT give you the maximum you can earn, rather it gives you what you can spend over say 30 years and be guaranteed, in the worst case scenarios over the life of the stock market, with various asset allocations specified, not to run out of funds.

In many, in fact most cases you will earn more. But in no case, during the time when you can no longer earn money, will you run out of funds before your plan does. At retirement, or early retirement, NOT running out of funds is VERY important.

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