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Hello billbill,

You wrote:

I was having trouble figuring out how Racy with no losses could be worth less than Reasonable with losses in both bond holdings. Then I calculated that $2000 less ws invested in Racy. Why? Surely not brokerage fees nor taxes which aren't considered.

Pixie elected to take a higher withdrawal rate from the "Racy" portfolio. That's one of the things that makes is "Racy." I'm tracking this with what I call a "Slow Racy" - in which I take a 6% rather than an 8% withdrawal. A higher WD rate makes the portfolio riskier in that it may not last as long as you do! It tries to make up for this with 100% equity investment. However, it becomes more vulnerable to a sustained bear market - or to a severe bear market early in the withdrawal period.

Maybe this helps explain why there are three different approaches being illustrated by Pixie.

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