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Subject:  Re: Retirement Port Behavior 2000-2010 Date:  12/31/2010  9:26 AM
Author:  temsike Number:  68039 of 103143

Ignore previous post. I counted the AWR twice. Once in PMT and also I deducted it from I/yr.

N (yrs) = 11. I/yr = 3.1%. PV = $1,000,000. PMT = $40,000. FV = $868,172.

Anybody who decided to retire on January 1, 2000 with $1M will have 86.8% of their (real) portfolio's value today. That's not scary at all.

Conclusion: the 4% AWR rule works even retiring in the worst year possible in the last 30 years.
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