1) The Get New Rich blog notes that “today’s economy is drastically different from the economy of the past few decades” and uses insights developed at www.PassionSaving.com to develop “10 New Money Management Techniques” that make sense for The New Economy.
2) The Bogleheads wiki statement on safe withdrawal rates dances about the Retire Early/Indexing Communty findings that the Old School studies are analytically invalid, hinting at the dangers of using these studies to plan a retirement but failing to put forward an explicit warning re their inaccuracies or to provide links to the New School findings. The wiki statement says: “Unfortunately, the term “Safe Withdrawal Rate” is necessarily an ambiguous term. This is because initial methods utilized historical data to statically determine what would have been safe given the actual results that past portfolios would have generated with the variables given. The next logical step, of course, was to use that information to predict future SWRs. Either use is technically correct, but one should always be sure to be clear whether the use is in reference to past or projected SWRs, so that unnecessary argument can be prevented.”
3) I post a guest blog entry at the Generatiion X Finance blog entitled Price Drops Are Good for Young Investors in the Stock Market. I say: “The reason why price drops make many of today’s investors anxious is that we were told so often during the huge bull that stocks are always the best investment for the long run and most of us are wildly overinvested in stocks today as a result. The answer is to learn how valuations affect long-term stock returns, to lower our stock allocations to more reasonable levels.”
4) I write a Letter to the Editor at the www.Early-Retirement-Planning-Insights.com site entitled Dividend Theory vs. Dividend Reality. I say: “I’m always interested in discovering how it comes to be that people believe things that are not so because those discoveries often point to fundamental analytical errors and corrections of fundamental analytical errors often generate big pay-offs.”
5) I write a Letter to the Editor at the www.Early-Retirement-Planning-Insights.com site entitled Refusing to See the Obvious. I say: “Is there information public as to whether securities firms ever make contributions that could in some way influence the types of questions studied or the types of methodologies employed? ”
Today’s Passion: I shared my thoughts on the Bogleheads wiki statement on SWRs in an earlier blog entry. Yet the statement remains as written to this day. I don’t get it.
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