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"In short, there's very little to fear from RMDs, as they will be pretty close to a SWR for a significant portion of most people's lives."

Interesting. I tried to make that point a long time ago and was basically told I was stupid and ignorant.


Not even close. Sorry.

I was able to tweak the spreadsheet a bit more, and got these equity values for 3 different withdrawal methods.
RMD, 4% SWR, and Guyton-Klinger at 5%.
RMD withdraws much more money than either of the other two methods.

BTW, I also did a run with the RMD taken all at once at the end of the year. The equity curves are only trivially different.


Beg of RMD Equity Age Yr # 4% SWR Guyton-Klinger, 5.0%
1951 $100,000 70 1 $100,000 $100,000
1952 $111,696 71 2 $111,327 $110,542
1953 $120,758 72 3 $120,481 $118,561
1954 $116,613 73 4 $116,950 $113,984
1955 $146,719 74 5 $147,867 $142,264
1956 $168,520 75 6 $172,138 $162,525
1957 $170,235 76 7 $177,299 $163,898
1958 $154,101 77 8 $164,078 $148,633
1959 $185,965 78 9 $201,755 $179,179
1960 $193,054 79 10 $215,137 $186,641
1961 $186,790 80 11 $214,959 $182,202
1962 $208,448 81 12 $247,215 $204,367
1963 $189,193 82 13 $233,853 $188,562
1964 $205,883 83 14 $263,997 $207,420
1965 $216,157 84 15 $289,078 $220,916
1966 $221,407 85 16 $310,534 $230,608
1967 $197,280 86 17 $292,538 $211,147
1968 $214,773 87 18 $334,846 $234,872
1969 $217,356 88 19 $359,570 $244,960
1970 $195,162 89 20 $345,245 $228,454
1971 $188,949 90 21 $359,119 $231,331
1972 $192,950 91 22 $393,157 $246,197
1973 $200,562 92 23 $440,613 $267,988
1974 $168,601 93 24 $405,666 $239,695
1975 $128,937 94 25 $342,630 $197,503
1976 $146,731 95 26 $420,735 $236,860
1977 $154,196 96 27 $484,382 $265,811
1978 $132,468 97 28 $467,159 $250,026
1979 $124,481 98 29 $492,234 $257,285

Total withdraw: $359,421 $128,581 <<-ttl W/D:->> $216,288
(from IUL vs SPY spreadsheet)
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