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Author: buzman Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: Is $1 million enough? Date: 5/12/2007 10:16 PM
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The safe withdrawal rate means a portfolio will last 30 years with a 100% chance of not running out of money.

Most importantly, when taking funds from a portfolio. Any spreadsheet or program that uses a static rate of return will give a unrealistic projection.

Why?

When taking withdrawals from a portfolio, the sequence of investment returns is critical-unless one can figure a way to guarantee a stable rate of return each year.

buzman
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