Friday, November 18, 2011

Floor-Leverage Rule Instead of 4% Rule

Floor-Leverage Rule Instead of 4% Rule 
SSRN - November 18, 2011 

Comment: Under this rule, the authors suggest building an income floor with 85% of accumulated assets, investing the remaining 15% of "surplus assets" aggressively in a portfolio with a 3x leverage factor and transferring assets from the surplus asset fund annually if it grows to be larger than 15% of total accumulated assets.

Monday, November 14, 2011

Retirement '4 percent' rule not sure thing

Retirement '4 percent' rule not sure thing 
Gail MarksJarvis (Chicago Tribune, November 14, 2011) 
 
Comment: Her solution to 4% rule problems--Take out 3.5% in initial year and skip inflation increases if market goes south.