This subject is frequently discussed here, although usually in a tangential way regarding safe withdrawal rates & methods, what percentage of one’s FIRE income is "guaranteed", whether to use ‘fixed’ or ‘variable’ withdrawals, and the like.
However, this paper analyzes it directly and produces some outputs & guidance that are useful for a range of scenarios that fit most situations. It also analyzes & compares ‘past’ results (back testing) with ‘forward looking’ results (actual forecasting), which I find especially useful. It’s well worth a read and, for me, prompted some thought about our current FIRE income/SWR approach. The […]
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