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hocus: <For example, we know that investors with a large portfolio have a higher SWR than those with a small porfolio.>

gurdison:Once again, you get it backwards.

I undertand that you do not agree with me on this, gurdison.

I hope that you do agree, however, that those who want to have the discussion may do so without first gaining your agreement.


Maybe this is a large part of our problem. Hocus, this is the discussion. Are you saying that a discussion is only permitted to contain posts that agree with you? Gurdison has posted a valid comment on your assertion which deserves consideration and, if merited, rebuttal. That is what a discussion is generally agreed to be.

What else were you expecting?

BTW, I propose a new acronym: WFWR, or "Warm, Fuzzy Withdrawal Rate", to distinguish it from the established SWR "Safe Withdrawal Rate." The distinction is important and caused much of the early chaos on the subject. The SWR is simply that rate which the portfolio survives if the specified rules are observed. The WFWR is that rate which an individual investor feels comfortable with, under whatever assumptions/demands he cares to make. Note that one is a simple statement of (essentially) portfolio end value while the other incorporates the wealth of subjective constraints which you have been discussing.

Clearly, it is the WFWR which you and those who agree with you are concerned with. If we adopt this new nomenclature, I am sure that a great deal of pointless wrangling will be eliminated.

If you prefer, we could make it "CWR" for Comfortable Withdrawal Rate, but either way I strongly urge you to consider the idea.

Regards,
holzgrafe
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