12/4/2024
About This Episode
Flexible vs. fixed distribution strategies: "I believe you expect that a flexible withdrawal strategy will pay out more money to live on, as well as leave more money to heirs. Bill Bengen seems to believe that this strategy is not sustainable over the long term even if a person had enough money to accept lower annual withdrawal amounts in market draw downs. Flexible withdrawal strategies make sense to me but there isn’t much writt en about them. What am I missing?”
The answer to this question includes 4 distribution tables:
Table D1.4 - Fixed Distributions: S&P 500 Equity Portfolio - Conservative ($40,000/yr)
Table F1.4 - Flexible Distributions (Conservative-4.0%/yr): S&P 500 Equity Portfolio
Table D4.4 - Fixed Distributions (Conservative-$40,000/yr): US 4-Fund Equity Portfolio
Table F4.4 - Flexible Distributions (Conservative-4.0%/yr): US 4-Fund Equity Portfolio
Finally Paul reads four Ben Carlson quotes about the nature of bull and bear markets. Paul makes reference to a table of annual Price to Earning (P/E)ratios starting in 1871 and another comparing the S&P 500 Price to Book Value from 2000 to 2024.