Retirement rules of thumb like the 4% rule are at odds with other opinions saying the theory doesn't take into consideration stock price fluctuations. If you have a bad sequence of returns in the beginning years of retirement, your portfolio is $%@#$@#.
I have heard some say, "just lower the withdrawal rate to 2-3%" and that will pass the montel carlo simulations, but is there a better way to structure retirement plans? I have heard of tactical asset allocation, I know Jason Wenk is a huge proponent of that theory and has a running blog on his experiences with that theory.
Can anyone comment on a good withdrawal rate or their opinion on sequence of returns?
Just looking to drum up a good conversation about retirement planning and how to prepare for market risk in retirement years.
I have heard some say, "just lower the withdrawal rate to 2-3%" and that will pass the montel carlo simulations, but is there a better way to structure retirement plans? I have heard of tactical asset allocation, I know Jason Wenk is a huge proponent of that theory and has a running blog on his experiences with that theory.
Can anyone comment on a good withdrawal rate or their opinion on sequence of returns?
Just looking to drum up a good conversation about retirement planning and how to prepare for market risk in retirement years.