The analysis assumes a 1.0% fee, or negative alpha, that is deducted from the portfolio value annually. This fee is included to account for unavoidable retirement portfolio expenses paid by the investor (e.g., mutual fund fees, advisor fees, account fees, etc.) for investment management.Intercst, Swedroe has a long thread at Bogleheads on this. Never mentioned is the 1% fee being deducted each year. For fixed investments like bonds, this is like taking 25% to 50% of your annual gain from fixed investments each year as an annual fee. No wonder the "analysis" shows a lower withdrawal rate. You should go post your comments at BH on Swedroe's thread, as I've been banned for life over there for questioning Swedroe on his fees and self-interest regarding his financial advice, not to mention his being a total blowhard.
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