UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next
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 75790  
Subject: Re: Safe Withdrawal Rate Date: 10/11/2007 8:28 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 3
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.

Hockeypop
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (19) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Smuggling Rice and Garlic
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement