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Even a broken clock is right....

PostPosted: 04/19/09 at 19:00:31
by Zdeerman
Looks like JWR is throwing Bennett way under the bus; essentially laughing at Bennett's clap-trap about a 4% SWR causing "millions of busted retirements in years to come," since according to JWR not only is 4% safe, but you can take out considerably more, using the good old Trinity combo, and no sophisticated timing, switching, or other mumbo-jumbo, hocus-pocus:

Invest 80% of your funds into an S&P500 index fund and place 20% into a money market fund or CDs. Calculate 5.4% of today?s balance. Withdraw this amount initially and increase withdrawals later to match each year?s inflation. Sell stocks to the extent necessary to maintain this allocation.

Except for determining the inflation adjustment, this is about as simple as you can get with stocks. It will provide income for 30 years minimum.

http://www.early-retirement-planning-in ... -2009.html

Feeling Goonish, John?

Have fun!


(but if you don't mind, I'll still stick with around 4% instead of your suggested around 6%, since we have a huge historical record of 4% working, and a relatively short and completely untested time (couple of years) of you two muttering your various highly changeable prognostications!)