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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 60037  
Subject: Re: SWR and irrational exuberance Date: 2/7/2007 9:26 PM
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patchdodd writes,

<<Can any system promise no down years, no significant losses?>>

Of course not and bear in mind that BMW's post related to a ten year period where his mothers' net worth declined by 60%, even though she was (presumably) on public assistance for the entire time. On the other hand I do not doubt that active management and excellence can beat intrcst's necessarily conservative plan. He offers a cookbook plan for retirement, and the nice thing about it is that it is time-tested. It works.

</snip>


How many studies have they done showing that 75% to 90% of actively-managed mutual funds underperform the S&P500?

I'm willing to take the risk of holding a portfolio of individual stocks rather than index funds, but only because my withdrawal rate is 1% to 2% of assets annually. I realize that there is a significant risk I might underperform even though I have have a 25-year history of excellent returns behind me. For more on the risks of holding a concentrated portfolio of individual stocks, see link:

http://www.retireearlyhomepage.com/concport.html

intercst


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