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varney asks,

I assume your study takes distributions evenly from the two asset classes. But what I'm more interested in is the strategy that you have N years of money in cash (MMF, CD, etc), and when the stock market return is low, you withdraw only from the fixed income portion and leave the stock stuff alone. Later, when stock market returns increase, you can withdraw more than you need to replentish the cash portion.

Has anyone done a study which takes this kind of strategy into account? It seems to me that the "safe withdrawl rate" would be higher...

In the Retire Early Safe Withdrawal Calculator, you can select annual portfolio rebalancing, so if the allocation is 82% stock/18% fixed income, your withdrawal is the same ratio.

I'm not aware of anyone doing the study you describe. It should be easy enough for someone to modify the spreadsheet to see if this strategy improves the "100% safe" withdrawal rate.


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