No. of Recommendations: 8
Several days ago, I asked for help in figuring out a way to increase withdrawals at the start of retirement and decreasing it later.

The answers I got led me to some research papers and allowed me form some conclusions. I'd like to share those with you.

One of the pioneers in establishing the 4% rule was William Bengen. He, along with Johnathon Guyton and William Klinger have done a lot of work in seeing if that amount can be raised.

Guyton and Klinger found that you could significantly raise the initial withdrawal rate, if you put certain checks and balances in the system to rescue your portfolio in down times. The papers are here:

A review of the work is here:

Bengen has a pretty pricey book here:

I had thought about buying the book, but decided against it because I'm more interested in the work of Guyton and Klinger for my particular needs.

This led me to this site:

This is Klinger's site and his software lets you runs simulations changing all the variables. You get get a free evaluation copy here, to see if you are interested.

The one thing this software doesn't have is a spreadsheet or mechanism for adding up your monthly expenses. I used Fidelity's retirement evaluator to get a total amount or you can use Quicken or put it in an Excel spreadsheet.

I'm ordering the software and will figure out my starting withdrawal percentage.

piranha1 (Milt)
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.