No. of Recommendations: 0
The retire early Withdrawal % spreadsheet has an error in it. If you use a series such as 30yr bonds which does not go back to the beginning of Shiller's data, the calculation assumes 0% return for those missing years. That under weights the bond % in the mix calculations and reduces the 100% safe return rate. If you add a 4.138% inflation indexed yield (todays treasury auction of 29 1/2yr indexed bonds) as an investment option, the best mix swings heavily towards bonds and the safe withdrawal rate increases to the mid 4%'s.

It appears that if your goal is to survive one of the great depressions without reducing your income, you are better off investing a significant portion of your savings in inflation indexed bonds.
Print the post  

Announcements

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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement