Author Topic: vanguard target retirement funds and SWR  (Read 535 times)

kenmoremmm

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vanguard target retirement funds and SWR
« on: July 30, 2018, 02:43:52 PM »
i know there are many portfolio blends out there that have been backtested and show SWR's well north of 4%. could someone enlighten me on where the vanguard target retirement land for SWR's? i like the idea of auto-rebalance internal to the target retirement funds, so that's where my money is now, even though expenses are 0.10% higher than admiral share options.

robartsd

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Re: vanguard target retirement funds and SWR
« Reply #1 on: July 30, 2018, 04:32:49 PM »
I'm not sure if there are any tools for back testing a portfolio with a glide path; but it would be easy enough to use any portfolio back testing tool to approximate the allocation of VTINX (the fund that all the target date funds eventually become). 70% bonds seems low to me for someone who is looking for a > 4% withdraw rate. If an all-in-one fund is that appealing to you, but you want more equities the consider a LifeStrategy growth funds.

ChpBstrd

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Re: vanguard target retirement funds and SWR
« Reply #2 on: July 31, 2018, 10:52:04 AM »
ERN did some monte carlo analysis and created a table comparing the probability of success for different withdraw rates, stock/bond allocations, and retirement lengths. One assumption is you stick with an allocation once retired.

https://earlyretirementnow.com/2016/12/07/the-ultimate-guide-to-safe-withdrawal-rates-part-1-intro/