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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 741515  
Subject: Re: It is safe now. Date: 7/16/2002 12:52 PM
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galeno asks,

<<<<Daryll42 wrote:
While I tend to agree that it's SAFER to begin 4% withdrawals NOW than at the end of 1999, in theory you could begin retirement NOW and withdraw MUCH MORE than 4%. That's because it's 1932...no longer 1929.>>>>

How do you know this? Is there something in the SWR study that I've overlooked or misunderstood?


Daryll42 is assuming that 1999 was "1929" and that today, 3 years later is, "1932". You can use my "P/E vs. safe withdrawal rate study" to find the 30-year safe withdrawal for a retirement starting in any year from 1871-1970, see link:

http://rehphome.tripod.com/pestudydata.html

The 30-year safe withdrawal in 1929 is 4.4%. If you started in 1932 it's 7.0%. Of course there's no way to know this for sure ahead of time, so my preference is to use 4% and have more money than I know what to do with when I get older. <grin>

intercst

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