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Post by Wisealpha on Dec 16, 2019 18:51:02 GMT
Something to read as we draw towards the slow down in news flow:
Post-election very short read -
What happened the last time the UK defaulted?
Beyond The 4% Rule: The science of retirement portfolios that last a lifetime
I've just started on it as I'm home alone today. Not a massive read.
Barbarians At The Gate
Essential reading if you are an investor. As relevant as ever. It's also fun! Good for the season of excess....
Think I'll have a look what's on my reading list. I'm getting through 'the 4% rule" quickly. Lets hope for a nice, undemanding Santa Rally!
1) are you suggesting the UK could default? Surely not. 2) What's the 4% rule? 3) Barbarians at the Gate reminds me of where P2P lending is right now and where high yield was when it first started...
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Post by dan1 on Dec 16, 2019 19:14:58 GMT
1) are you suggesting the UK could default? Surely not. 2) What's the 4% rule?
3) Barbarians at the Gate reminds me of where P2P lending is right now and where high yield was when it first started... I can answer the easy one.... 2. Safe Withdrawal Rate (SWR), see www.investopedia.com/terms/s/safe-withdrawal-rate-swr-method.asp
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r00lish67
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Post by r00lish67 on Dec 16, 2019 19:15:34 GMT
1) are you suggesting the UK could default? Surely not. 2) What's the 4% rule? 3) Barbarians at the Gate reminds me of where P2P lending is right now and where high yield was when it first started... I'll answer one of those. The 4% rule is the idea that you can retire by living off 4% of your amassed capital per year. For example, save a million, and you can live on £40,000 p.a. It's the basic idea that the FIRE movement has latched onto. However, many suggest that in the current context of both bonds and stocks being richly valued, 4% is too generous a withdrawal rate. I agree, I use 3.00% currently. Good summary over on Monevator Doh. crossed with dan1
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Post by Wisealpha on Dec 16, 2019 19:22:23 GMT
1) are you suggesting the UK could default? Surely not. 2) What's the 4% rule? 3) Barbarians at the Gate reminds me of where P2P lending is right now and where high yield was when it first started... I'll answer one of those. The 4% rule is the idea that you can retire by living off 4% of your amassed capital per year. For example, save a million, and you can live on £40,000 p.a. It's the basic idea that the FIRE movement has latched onto. However, many suggest that in the current context of both bonds and stocks being richly valued, 4% is too generous a withdrawal rate. I agree, I use 3.00% currently. Good summary over on Monevator Seems smart to me. What age do you think you should be before you start withdrawing? And does your capital include interest/dividend income earned during the year?
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Post by Wisealpha on Dec 16, 2019 19:24:58 GMT
1) are you suggesting the UK could default? Surely not. 2) What's the 4% rule?
3) Barbarians at the Gate reminds me of where P2P lending is right now and where high yield was when it first started... I can answer the easy one.... 2. Safe Withdrawal Rate (SWR), see www.investopedia.com/terms/s/safe-withdrawal-rate-swr-method.aspWe might work on an automatic withdrawal algorithm based on this, as part of the Robowise options - what do you think?
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Post by dan1 on Dec 16, 2019 19:47:40 GMT
We might work on an automatic withdrawal algorithm based on this, as part of the Robowise options - what do you think? I'm not familiar with your products or this particular discussion to be honest but my initial reaction is an automatic withdrawal based on the natural yield, i.e income rather than a fixed percentage of portfolio (nominal) value. Lots of debate around 4% rule, you could lose most of the Christmas period reading up about it! As I understand, it's derived from US stock data assuming 30 year period and therefore represents a period of US growth where they effectively went from an emerging to a developed economy. Excludes income within current year.
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r00lish67
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Post by r00lish67 on Dec 16, 2019 19:48:50 GMT
I'll answer one of those. The 4% rule is the idea that you can retire by living off 4% of your amassed capital per year. For example, save a million, and you can live on £40,000 p.a. It's the basic idea that the FIRE movement has latched onto. However, many suggest that in the current context of both bonds and stocks being richly valued, 4% is too generous a withdrawal rate. I agree, I use 3.00% currently. Good summary over on Monevator Seems smart to me. What age do you think you should be before you start withdrawing? And does your capital include interest/dividend income earned during the year? Any age at which you can acquire sufficient capital and want to retire. You count your capital at the start of the year and can spend (whatever % you determine) per year.
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garfield
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Post by garfield on Dec 16, 2019 21:05:33 GMT
Just had a copy of Barbarians at the Gate delivered today, cheers TTH! (I think/hope) Full time job?!! You been spending more than 4% then?
Also had a stab at the WA training course. Passed part 1 and part way through part 2. It's very easy to follow, well presented.
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garfield
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Post by garfield on Dec 17, 2019 7:42:48 GMT
Ah, I see! The winter blues are kicking in... Yes, the markets certainly seem to be behaving with a big boost in confidence since last week! Sounds like you need a new hobby, away from books and computers. Something more practical, and indoors I guess!
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garfield
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Post by garfield on Dec 17, 2019 13:06:33 GMT
Ive already got lots of hobbies and a big garden! You don't like my youtube music, but I've alo got just over 3000 LP's, mostly as digital files now.
And did I mention beer, does anyone need more of a hobby than beer? LOL
Plenty to take your mind off the winter blues then! Just don't look out the window! Oh, and Merry Christmas! To one and all!
3000 LPs??!
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garfield
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Post by garfield on Dec 17, 2019 21:48:03 GMT
Well it was a happy Christmas...
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garfield
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Post by garfield on Dec 18, 2019 8:11:40 GMT
Don't tell it was the youtube clip? LOL No, just the potential of watching the You Tube clip!
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Nomad
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Post by Nomad on Dec 21, 2019 2:56:41 GMT
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garfield
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Post by garfield on Dec 21, 2019 11:12:48 GMT
We might work on an automatic withdrawal algorithm based on this, as part of the Robowise options - what do you think? I've mulled this over for a few days and in general I think everyone's circumstances will vary too much to come up with anything meaningful. I'm also favouring a more dynamic approach (as suggested in the article) with regular assessments. Thus I'm not a big fan of the SWR method. We plan to build up our WA investment and would be more likey to take a chunk out (in the medium term, years away yet) if we wanted to rebalance our portfolio. Just my two penneth worth...
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Post by Wisealpha on Dec 27, 2019 12:13:42 GMT
That's good feedback. I think we may just add another option to Robowise where people can opt to automatically withdraw either coupons or a % of their holdings every year automatically so people can effectively choose what suits their needs. Just adding some further automation to the Robowise options already available.
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