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Subject:  Why have 100% in Equities? Date:  10/15/2003  8:47 AM
Author:  John3haha Number:  1039 of 5276

Go over to the Retire Early Home Page and read post # 127782 by Intercst. Now. The rest of this post is just a poor copy.

OK, if you need convincing...Intercst ran safe withdrawal rates (SWRs) over every 30-year period from 1871-2002. He wrote "I calculated the maximum inflation-adjusted SWR that would have survived in each individual 30-year period for asset allocations of 0% stock to 100% stock in 5% increments. In 74 out of the 100 30-year periods 100% stock provided the highest SWR."

I would argue that, during one's accumulation mode, there is an even stronger incentive to be 100% in eqities. FIRE Wannabes should be in accumulation mode. Our ability to stay the course with equities over longer periods of time should be greater. I would make a big exception for any other kind of investment you have deep knowledge of and/or a commitment to like rental real estate.

Intercst is a wonderful, awesome resource at TMF when he writes about FIRE. This kind of post is why it can be worth reading the REHP board despite the poor signal to noise ratio at times. Go read his post and give him a rec, please. You can stay and start looking into Monte Carlo simulations, portfolio mixes and all that if you want to take the time.


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