I
compared withdrawal rate percentages produced by Mr. Blanchett's
spreadsheet assuming 50% equities, total portfolio fees of 0.20% and a 75%
Target Probability of Success with the withdrawal rates produced by the
Excluding Social Security 2.0 spreadsheet on this site for payment periods of
10, 15, 20, 25 and 30 years (using the recommended assumptons for investment
return and inflation), and the results were very close (within .03
percentage points) for payment periods of 30, 25 and 20 and relatively
close for payment periods of 15 years and 10 years.
As
mentioned in my September 10 post, I support the dynamic "actuarial"
approach proposed by Messrs. Frank Sr., Mitchell and Blanchett, and I
believe that Mr. Blanchett's simplification is a very useful addition
to make their approach more accessible to financial planners and
other users.
I
will point out that Mr. Blanchett's spreadsheet is most useful to a retiree who
has no other sources of retirement income or bequest motives as it does
not coordinate with other sources of retirement income, such as annuities, and
it does not provide for leaving a specific amount to heirs. To reflect
such items, you may have to use their more complicated model, or the simple
spreadsheet set forth in this website.
