Tag: Trinity Study
Questions on the 4% “safe” withdrawal rate
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Questions on the 4% “safe” withdrawal rate

I have over 250 posts on the blog stretching back over the last 18 months, and you readers would only notice a comment on one of the old posts if you happened to subscribe to the "Comments" RSS feed. (It's the orange icon over there on the right, under the "Please leave a comment!" text.) However, WordPress notifies ...

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How much will military veterans leave on the table?
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How much will military veterans leave on the table?

    Once you've started saving and investing for financial independence, you want to know when you're actually financially independent. The answer should be straightforward, but it starts out with a simple number and then piles on the fine print. Here's an example:  "You're financially independent when ...

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Is the 4% withdrawal rate really safe?
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Is the 4% withdrawal rate really safe?

What if 4% is all wrong? By "4%" I mean the method tested by the Trinity Study over a decade ago.  It determined a portfolio would survive for 30 years if withdrawals started at 4% of the portfolio's initial value and then were raised each year by the rate of inflation. Skeptics point out that the Trinity Study is ...

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Details of the 4% Safe Withdrawal Rate
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Details of the 4% Safe Withdrawal Rate

Let's follow up on questions from last week: Explain again this 4% – is that 4% withdrawal from the “investment pot” each year in retirement? Wouldn’t that automatically reduce the amount withdrawn each year? And the 25 times living expenses…we might be unusual in that our children are both college age as we approach ...

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USAA: Seven Money Rules to Break
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USAA: Seven Money Rules to Break

A few weeks ago USAA article posted an article on when to break the "money rules". Here's the summary, with my comments in italics: 1. Pay off debt and build an emergency fund before saving for retirement ... ... except when your debt is of the low-rate, tax-reducing variety, such as a mortgage or student loans, and ...

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Back to the Trinity Study
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Back to the Trinity Study

Today's post will be a sensuous reading experience that only a financial planner or an economist could love. If you're just getting started on your own finances then you probably want to skip this post (!) in favor of reading the “Armed Forces Guide to Personal Financial Planning”, or "The Military Advantage", or ...

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TIPS and I bonds for military retirement?
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TIPS and I bonds for military retirement?

Internet discussion boards have some perpetual topics. New members will constantly rediscover the same ground that has been trod by the older members, and occasionally a newbie will neglect to check the archives to see if the issue has already been beaten to death. On retirement forums, two of those perpetual topics ...

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Military retirement: how much can I really spend?
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Military retirement: how much can I really spend?

The last post described the Trinity Study and explained the idea of a "safe withdrawal rate" to maximize the success of a retirement portfolio. A 4% SWR is a starting point, one put forward over a decade ago and appearing in print most frequently. It's straightforward, it has a high success rate, and it adjusts for ...

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Military retirement spending: how much will I need?
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Military retirement spending: how much will I need?

The short answer: your retirement savings portfolio needs to be about 25 times the size of your net annual retirement spending. If you want to spend $40,000/year in retirement and you don't have any pension or other income, then you're going to need a million bucks in the bank. If you have a military pension, ...

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