New Tool errata

Research on Safe Withdrawal Rates

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JWR1945
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New Tool errata

Post by JWR1945 » Tue Jun 22, 2004 8:06 pm

Refer to A New Tool from Wed Apr 28, 2004 at 4:41 pm CDT.
http://nofeeboards.com/boards/viewtopic.php?t=2427

Here are the corrected statistics for HDBR80. The formulas were right, but the statistics were wrong.

This is the relevant HDBR80 information:

For HDBR80, which has 80% stocks and 20% commercial paper and an expense ratio of 0.20%, the equations for the 30-year Calculated rates (i.e., the most likely Zero Balance Rates) and return0 are:
Code:

Years R Squared Equation
6 0.5241 y = 2.2778x - 9.5372
10 0.7478 y = 1.9526x - 7.6448
14 0.9045 y = 1.8432x - 6.8875

and the statistics are:
Code:

Std. Dev HDBR80 return0
6 years 1.819669 4.144842
10 years 1.108973 2.16538
14 years 0.620502 1.143709

These are the standard deviations for HDBR80 and its annualized return (return0) for 6, 10 and 14 years. All numbers are percentages. (The slope also equals ratio of the standard deviations.)

Have fun.

John R.

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