No. of Recommendations: 1
rrosenkoetter writes,

So you still run out of money after 20 years... And note it's just a straight $16k every year.

No increase for inflation in this model.


Actually there was DEFLATION during the Great Depression from 1929-1933 when consumer prices dropped by 25%. The CPI didn't return to the 1929 level until 1943. If you take the deflation into account a 4% withdrawal survives for 30 years.

I wasn't able to easily find historical data on the S&P 500 going back to 1928..
Did it exist back then??


Here's the S&P500 index all the way back to 1871 -- 135 years of data. It was compiled by Yale Univ. Professor Robert Shiller.

http://www.econ.yale.edu/~shiller/data.htm

intercst
Print the post  

Announcements

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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.
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.