Great video. It has been my experience that the problem with Monte Carlo analysis is that people will look at the high-end outlier results and say “that’s nonsense, will never happen“ but then look at the worst case outlier results and are scared and believe very well could happen.

I kind of like the idea of using guaranteed income like Social Security and pension for my needs and then taking a fixed percentage from my portfolio for wants. Not a big deal if my income fluctuates a bit from year to year.

I totally agree with most of what you said. I am spending a lot more money now than in the future for sure. The travel budget alone is over 50K per year now, but in a couple of years that will be less than half. Since I don't have any debt, the wife and I will be very hard-pressed to also spend on many other things as we do now (health insurance since we are not under Medicare yet comes to mind, dinners, I am beginning to enjoy cooking at home and cars. Got my dream car so I am good to go). People need to realize the most important things in life are, health, family, friends, and time to enjoy it all.

Great discussion of varying approaches to this important topic for people's consideraton. As usual, great content and easy to follow discussion. Thanks Eric. Have a great week. Larry, Central Valley, Ca.

Great discussion of opportunity costs starting around 6:00.

Love the dynamic spending model. Andy and Tony at SG do a great job keeping me inline, but I’m always pushing to spend more! Not taking it with me!

Excellent Video. I think the dynamic strategy you choose to be a very personal decision. I agree a more complex approach is best but hard to implement on your own.

Dynamic spending is a game changer and aligns with life whether that is unexpected or special expenses as well as the volatility of the market riding out the noise. It’s more adaptable and in the end with spending guardrails gives on more confidence in spending.

Great video!!! Very informative. Thank you.

1st and 2nd dynamic strategy are using $34k which is 3.4% of original balance. How was this calculated? Why not 3% or 3.6% ?

Thanks for this video. Interesting. Chart #1 appears about a 60/40 portfolio? Bengan's 4% study, used a 50/50 portfolio. What about increasing diversification of sub asset classes, would that increase the SWR? What about the effect of 1% + fees? Good point about Fire.

Good video. What do you think of Kitces' ratcheting (up only) withdrawal strategy?

I don’t spend $8k per month now. I guess I won’t mind not spending it in retirement.

The second strategy "endowment'' spending chart for the bad trial 1966 case at around the 16 minute mark, seems to show the annual spending floor is only ~$30K instead of the $34K mentioned in the video and as shown in the other charts ? Is there a chart error, or am I misunderstanding this strategy ? Otherwise, thanks for the great video !

The 4% rule is outdated and irrelevant. Everyone has a different needs analysis on how much your annual expenses are. And annual expenses can change year to year. Especially with inflation. You first need to know how much you spend each year and how you can cover your expenses from your savings and social security. Your Expenses is the most important number you need to know during retirement.

Sounds complicated, all these strategies. I'm going to look at what I need, then add buffer each year for misc and fun spending, then add it up and put it through the Montecarlo tests. If in the 90s, I'm not going to worry much about things. SS will be icing if it's there.

Way too detailed . Keep it simple . Save more spend less so that 4 % will always work. If you can’t spend 4 % then the financial markets and advisors are FOS.