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BenSolar writes:

But what do you do when dividends and interest are higher than your withdrawal? They are reinvested minus tax. This effect is not shown in the study.

It could be that it is not a big deal, or it could affect things significantly.

Thank you Ben. You obviously clearly understand that it makes no difference what you assume your rate of taxation to be once you start distributing. You still require a certain sized withdrawal from the portfolio. Many of the adherents of the SWR study either fail to understand this or prefer to pretend it doesn't exist. Wishing it away will not work. It is a methodological flaw which may have an impact on those who don't exist exclusively in tax-deffered accounts (most of us). Welcome aboard.


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