An earlier blog entry described the background of my recent correspondence with Michael Kitces on safe withdrawal rates (SWRs). Set forth below is the text of an e-mail that I sent to Michael on November 25:
I changed the title of the podcast to “My Conversations with Michael Kitces.” The podcast itself still includes the discussion arguing that no one can attain true expertise today because of the taboo on pointing out the flaws of the Passive Investing model. But the discussion makes clear that this argument is not in any way intended as a dig at you or your abilities. You’ve persuaded me that it is better not to risk confusion among those who only look at the title and then move on. Thanks for sticking with it long enough to bring me around re that one.
I love the first long paragraph of your e-mail. That all sounds real to me. I continue to believe that we very much need to change the ways in which we describe things so that the risks of Passive Investing are made more clear to people. But there is obviously another side to the story or else we wouldn’t have ended up where we stand today in the first place. You are addressing the realities in a clear and understandable and believable way with those words. I have not found too many willing to do that. So I was very happy to see those words appear before me on my computer screen this morning.
Have a great Thanksgiving!