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Kevin's model that began this thread shows huge "bonuses" in good years followed by 40-50% cuts when the following year is not so good. Do you think that would make you any happier? Whenever I've received bonuses at work I've saved the money. If my "paycheck" is coming out of my investment portfolio, what's the point in paying myself a bonus?Thanks to Mr. Finney said spreadsheet is available for downloading. You can vary 5 parameters plus resample returns (using log mean and log SD).www.phillysites.com/foolishness/klouche/draw.zipYes, the plan proposes some ability of the retiree / investor to weather changes in draw amount, in exchange for significant improvement standard of living. Given the numbers presented, the retiree is not exactly eating dog food.For fun you can up the draw to equal the expected return. Some resamples have the retiree going to 20% of target before recovering. I've even tried pulling out 50% more than expected average. Even this did not lead to ruin and eventualy a string of good years came along (bull market) to push account size over threshold where this super draw self sustains.KL
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