Wednesday, July 16, 2014

From Dirk Cotton's The Retirement Cafe: Half Right

Dirk Cotton recently made an excellent post which provides further background descriptions about what I was doing in a recent Advisor Perspectives column about using Monte Carlo simulations to get conservative return assumptions. Dirk's post is The Retirement Cafe: Half Right. It's also worthwhile to check his comment section.
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3 comments:

  1. Dirk CottonJuly 16, 2014 at 11:00 AM

    Thanks, Wade! I enjoy the conversations at your blog as much as fly fishing, sporting clays and afternoons at Caffe Driade. This is such a great retirement hobby.

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  2. Joe TomlinsonJuly 16, 2014 at 11:07 AM

    Nice post by Dirk Cotton on your column. I admit that I like using Monte Carlo simulations to get a feel for the potential variability of outcomes. However, I understand why some would prefer to work with a spreadsheet and a conservative return number.

    I also liked his post on the Guyton and Kitces videos (there's a link on his post about your column). I'll have a column in Advisor Perspectives next week where I also discuss the Guyton and Kitces videos and make the case that essential-discretionary deserves more respect.

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  3. UnknownJuly 16, 2014 at 6:20 PM

    Thanks to both of you. Dirk, you comments section is continuing to grow with more good discussion. I certainly agree that one needs to consider much more than a worst-case scenario when making a retirement plan.

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