This calculator simulates how a retirement nest egg would fare using historical data. http://ift.tt/2wKw974
The results seem to agree with the famous Trinity study that says in retirement a 4% withdrawal rate is 'safe'. At least if you have the money invested in the market (mostly stocks, but some bonds are okay too). The calculator shows how an all cash portfolio gets eaten away pretty fast by inflation.
What interests me is how wide the range of final balances is (sometimes 10x-20x between the low and high). For example if you retired in 1929 you were pretty much screwed because of the depression, but if you retired in 1975 you did great because of the booms and died before the crash of 2008...
I'm starting to wonder if luck and timing is too often discounted by all the financial planning 'logic' out there?
Would like to know some thoughts from others, how they know they are saving enough while working, allocating it to the right stock/bond mix and not withdrawing too much during retirement.
Disclosure - I'm a writer for Wealth Meta. They are not financial advisors or selling any financial products. WM is a team of software developers (and writers) building financial tools with the goal of helping people organize their finances. I'd be interested in getting feedback on the calculator.
Submitted August 30, 2017 at 04:21PM by MichaelBloggerWM http://ift.tt/2wp00PR
