Skip to main content
No. of Recommendations: 2
Came across an article today regarding a method of optimizing a flexible safe withdrawal strategy based on the underlying asset allocation of a portfolio. The resulting rules would contain a combination of a fixed initial portfolio withdrawal rate and a rate based on the value of the remaining portfolio.

For example, one spending rule presented is

Allocate 75.20% to stocks. Each year, withdraw 3.54% of starting portfolio + 1.06% of current portfolio.

While I admit I don't understand the nuances of the optimization methodology (I'm not very mathematically oriented), I do find the concept thought-provoking.

Thought some of you may find it interesting.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.