Graphs of HDBRs versus Earnings Yield

Research on Safe Withdrawal Rates

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JWR1945
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Joined: Tue Nov 26, 2002 3:59 am
Location: Crestview, Florida

Graphs of HDBRs versus Earnings Yield

Post by JWR1945 »

I am pleased to announce that we have added Bpp's graphs of Historical Database Rates versus Earnings Yield at the bottom of the special SWR Research Section (in addition to the calculators). The graphs cover start years 1871-1980, 1871-1922 and 1923-1980. The graphs include both of our standard portfolios HDBR50 and HDBR80. HDBR50 consists of 50% stocks and 50% commercial paper. HDBR80 consists of 80% stocks and 20% commercial paper. All portfolios would have survived a full 30 years at the withdrawal rates shown and failed (i.e., been depleted) at withdrawal rates 0.1% higher.
http://nofeeboards.com/jwr/jwr.html

Have fun.

John R.
Mike
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Post by Mike »

The graphs look nice John. Thank you.
JWR1945
***** Legend
Posts: 1697
Joined: Tue Nov 26, 2002 3:59 am
Location: Crestview, Florida

Post by JWR1945 »

Be sure to thank Bpp and ES. Bpp made the pictures and ES made them available.

It is one thing to read my posts and see some numbers. It is much different to look at the graphs. They are dramatic. They get the point across much better.

Remembering that today's P/E10 is near 27 and that a 5% earnings yield corresponds to P/E10 = 20, who can look at those graphs and then feel comfortable making 5% or 6% withdrawals?

Have fun.

John R.
Mike
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Posts: 278
Joined: Sun Jul 06, 2003 4:00 am

Post by Mike »

Be sure to thank Bpp and ES.
Ok. Thank you Bpp and ES.
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