The Financial Uproar site has posted my Guest Blog Entry entitled It’s Impossible to Plan a Retirement Without Looking at Valuations.
Juicy Excerpt #1: Another guest post by everyone’s crazy PF guy Rob Bennett.
Juicy Excerpt #2: The calculator says that in those circumstances an 80 percent stock allocation provides a safe withdrawal rate of 3.8 percent. Move to a 20 percent stock allocation (80 percent bonds or whatever) and the SWR moves up to 4.7 percent. There’s a penalty for going with a high stock allocation at today’s prices. This will not be so once we move back to fair-value prices. At fair value, moving from 80 percent stocks to 80 percent bonds (or whatever) would LOWER your SWR from 5.3 percent to 5.0 percent.