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Subject:  Re: The hocus plan: 4% from 100% FI? Date:  5/1/2003  1:42 PM
Author:  galagan Number:  104960 of 881715

Ben, thanks for the reply.

Just to clarify, we're talking about withdrawals over 50 years and not 30 or 40, and so that's why the SWR based on the REHP study is 3.31 percent and not somewhere closer to the oft-mentioned 4 percent, right?

The conclusion you draw is that you can produce a slightly higher SWR through a timing strategy than by straight static investment. Some will say that raising your SWR from 3.31% to 3.4% or 3.5% isn't significant.

But am I also right that we're still not really comparing the same thing, because you chose to switch from 0-100 to 50-50 based on simplicity of calculation and not based on that being the optimal switch? Is the possibility still open that you might find a better switching mechanism that would produce a still-higher SWR?

Thanks for your help.

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