>>Now, Morningstar (concerned about equity valuations, not inflation) says that retirees should cut consumption to 3.3% of their portfolio instead of 4%. That’s a big cut in income, especially when prices are up!<<
On the contrary, big portfolio gains in recent years means today's 3.3% wdwl rate is equal to or greater than 4% wdwl rate of a few years ago. MStar makes that argument.
Pleased to find your blog through Josh B (where I also found your book last year--the one with "Brothel" in the title). Good comments on 4% rule. But in its defense I would still say that is a much better place to start--esp for one of those "seniors"--than starting with . . . . nothing. But it remains a lousy place to stop.
>>Now, Morningstar (concerned about equity valuations, not inflation) says that retirees should cut consumption to 3.3% of their portfolio instead of 4%. That’s a big cut in income, especially when prices are up!<<
On the contrary, big portfolio gains in recent years means today's 3.3% wdwl rate is equal to or greater than 4% wdwl rate of a few years ago. MStar makes that argument.
Pleased to find your blog through Josh B (where I also found your book last year--the one with "Brothel" in the title). Good comments on 4% rule. But in its defense I would still say that is a much better place to start--esp for one of those "seniors"--than starting with . . . . nothing. But it remains a lousy place to stop.