My last clarification. Mr. B's calls his 4.7% number the "Universal SAFEMAX" as opposed to any other safe withdraw rate. He does not like the term "rule". The 4.7% number is a worst case, the number that has withstood all that the past 100 years of financial history could through at it. It assumes buy and hold, ending with $0 at the end of 30 years. He does not say anywhere that it is what people should use or even consider 😉. Most of his book explains how to adjust his research to your individual circumstances. Yes, he says you need to monitor your plan, but what plan doesn't 🧐. CAPE probably isn't the best matrix to use by itself, but you have to use something to base your imputes on that you enter into Pralana, that's the challenge 😮.
Lets hear from others, what do you think????? How do you decide on what retirement plan you plan on using??
@golich428 I do have Burton Malkiel’s "A random Walk Down Wallstreet" in my library. I borrowed Wade Pfau’s "Retirement Planning Guidebook" from a friend and read it, so not in my library, yet 😉. Can you tell me a little more about Charles Ellis "Winning The Losers Game"? It's from 2009.
I now see that "
The main theme is once you have amazed enough money to support your desired lifestyle you should take risk off the table so you don’t jeopardize it by playing the same offense that you played while accumulating wealth. His analogy is playing tennis. Most amateurs lose because they try and play a risky game of offense by attempting to hit kill shots that have low chance of success. They would win more marches by playing defense and focus on getting the ball back over the net.
I read the old version so I need to read his latest.
So I attempted to explain how I approach retirement. What is yours - anybody can chime in - this is just a friendly discussion on a topic I think everyone on this forum is somewhat passionate about - not just nuts and bolts about Pralana but about how we approach it when we turn from building a castle to dismantling it brick by brick.
This is a great topic. But i wonder if it should be given it's own thread separate from the Bengen book? I just created the new thread (link). Maybe consider reposting your answers there?
