I’ve posted Entry #146 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called What’s Missing from the Wall Street Journal Article Saying “Goodbye” to the 4% Rule?
Juicy Excerpt: Making mistakes need not be such a terrible thing. It is often by making mistakes that we learn new things. But the learning process is short-circuited if we never ask the “Why?” question. The error in these studies are not hard to uncover. I saw it the first time I looked at one of them (the error is that the studies do not adjust for the valuation level that applies on the day the retirement begins). Should the author of the article not be interviewing people in this field to learn whether they have learned from the mistake and are taking steps to see that it is not repeated?
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