tag:blogger.com,1999:blog-5994111658248655830.post7292705173591877678..comments2017-05-17T02:10:46.926-07:00Comments on Retirement Income Scenarios: The X% RuleWilliam Sharpehttp://www.blogger.com/profile/05491169505008130323noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5994111658248655830.post-10967473180070459272016-10-20T02:23:38.857-07:002016-10-20T02:23:38.857-07:00I liked the content on this site. Would like to vi...I liked the content on this site. Would like to visit again.<br /><br /><a href="http://www.paidonexchange.com.au/choosing" rel="nofollow">Express Commission</a> <br /><a href="http://www.paidonexchange.com.au/" rel="nofollow">Real Estate Commission Loans</a><br />Kevin Hakneyhttp://www.blogger.com/profile/05768575666576684649noreply@blogger.comtag:blogger.com,1999:blog-5994111658248655830.post-67951175013372529542015-01-07T03:25:32.126-08:002015-01-07T03:25:32.126-08:00This is something new… what’s this X% rule? And ho...This is something new… what’s this X% rule? And how does it relate to <a href="http://www.bidnessetc.com/calculator/retirement/" rel="nofollow">Retirement Calculator</a> plan?<br />Mark J. Guillenhttp://www.blogger.com/profile/11806263406630274185noreply@blogger.comtag:blogger.com,1999:blog-5994111658248655830.post-29085234300872717792014-10-29T15:00:48.074-07:002014-10-29T15:00:48.074-07:00I think using a Monte Carlo simulator is a mistake...I think using a Monte Carlo simulator is a mistake when it comes to trying to find out the maximum withdraw rate from a portfolio as it doesn't take into account interactions between markets. This is done by finding the worst case 40 years in the last 100 years of market data and taking that as your best case withdrawal - anything else is a chance for running out of money. Don't trust your retirement savings to a random number generator!<br /><br />fdFinancialDavehttp://www.blogger.com/profile/12649141282359194756noreply@blogger.comtag:blogger.com,1999:blog-5994111658248655830.post-3850279294439047792014-10-15T10:43:24.277-07:002014-10-15T10:43:24.277-07:00Professor Sharpe asserts that:
…first principles d...Professor Sharpe asserts that:<br />…first principles dictate that any rule for spending out of a retirement account should at the very least adhere to the following principle:<br /><br /> The amount you spend should depend on<br /> 1. How much money you have, and<br /> 2. How long you are likely to need it<br /><br />%x is not part of this statement. It is added to make a calculator computationally feasible.<br /><br />A proper retirement calculator should use the data referred to in the statement to compute that amount of money available for annual spending, after taxes, stated in today’s dollars. That is a value that a user can relate to. Then a Monte Carlo wrapper is added to compute the average, across all trials, annual spending along with the first and second standard deviations below the mean. These are more meaningful values than probability of failure.<br /><br />There is such a calculator available on the internet at i-orp.com. There is no fee and no registration.<br /><br />%x and its attendant probability of failure is a terror tactic propagated by mutual funds to increase retirement savings.<br /><br />James Welch<br />ORP<br />Jim Welchhttp://www.blogger.com/profile/07722434090438251641noreply@blogger.com