No. of Recommendations: 1
hocus wrote,

Intercst has performed an important service by offering the safe withdrawal study. It's a valuable tool that lets people know the amount they can take out of a pool of stock investments each year while depending on the pool to still be there (and most likely grow). The only point on which I differ is whether this tool can be applied in cases where the investor has doubts about his ability to remain in stocks in the aftermath of a sharp drop in portfolio values.

It's actually worse than that. <morbid grin>

If you rebalance your portfolio annually, not only would you be remaining in stocks -- you would be buying more to maintain the "efficient frontier" portfolio allocation in a down stock market.


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