tag:blogger.com,1999:blog-5465015914589377788.post1635891184677043503..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Abusing the 4% RuleMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger9125tag:blogger.com,1999:blog-5465015914589377788.post-61313040676794229302014-02-09T15:55:01.104-05:002014-02-09T15:55:01.104-05:00@Gene: Definitely sad. I had to look up the 7% so...@Gene: Definitely sad. I had to look up the 7% solution. Apparently, Sherlock Holmes describes cocaine as a 7% solution. I guess cocaine is expensive too :-)Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-65872908750979763872014-02-09T15:34:16.561-05:002014-02-09T15:34:16.561-05:00Alternate title: "4% Rule or 7% Solution?&quo...Alternate title: "4% Rule or 7% Solution?" Sad state of affairs when closet indexer-huggers can take 1/2 of someone's investment returns.genehttps://www.blogger.com/profile/05608927986297939720noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-22834255856949115122014-02-06T19:44:41.558-05:002014-02-06T19:44:41.558-05:00Now you're sounding like my eldest: first ques...Now you're sounding like my eldest: first question every afternoon!BetCrookshttp://financialcrooks.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-28093374194834575382014-02-06T15:39:12.672-05:002014-02-06T15:39:12.672-05:00@Blunt Bean Counter: It's not possible for all...@Blunt Bean Counter: It's not possible for all individual investors who pay active managers to make market returns. Active managers dominate the market and so must receive the market average returns before fees. We can decide that individual investors have the responsibility to see to it that they at least meet the market return, but the reality is that most will not and it's not possible for all of them to do so.<br /><br />I agree that the problem is with the misapplication of the rule rather than the rule itself. But those who discuss the rule have a responsibility to explain properly how to apply it. A simple way to explain it is that you have to pay any fees out of the 4% withdrawal.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-65409772324739258852014-02-06T15:33:06.671-05:002014-02-06T15:33:06.671-05:00@BetCrooks: What's for supper? I'm gettin...@BetCrooks: What's for supper? I'm getting hungry :-)Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-61217980776411445872014-02-06T15:15:09.430-05:002014-02-06T15:15:09.430-05:00Michael, while there is debate on how many active ...Michael, while there is debate on how many active managers beat the market, is it not incumbent upon each individual investor to ensure their manager at least hangs around market returns after fees and if not, move on to another advisor or low cost index funds? The rule has flaws, like fees and ignoring taxes, but why pay fees if you are not getting the return? To me the flaw is more attributable to the investor than the rule itself. The Blunt Bean Counterhttp://www.thebluntbeancounter.com/noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-14663483378660575522014-02-06T15:06:03.860-05:002014-02-06T15:06:03.860-05:00Sigh. I was going to take the kids out for supper....Sigh. I was going to take the kids out for supper. After reading this, I'm going to be cooking again--I may want that extra money more in the future than today....BetCrookshttp://financialcrooks.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-75451572560664426092014-02-06T12:57:35.553-05:002014-02-06T12:57:35.553-05:00@Unknown: Thanks. I figured I needed an analogy t...@Unknown: Thanks. I figured I needed an analogy to make my point more memorable. It took me a while to come up with that one.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-82863041452219125632014-02-06T12:49:11.609-05:002014-02-06T12:49:11.609-05:00love the analogy: "This is like taking a rule...love the analogy: "This is like taking a rule of thumb about how much juice you can get from an orange and applying it to juicing a grape." <br /><br />your perspectives on retirement income are very helpful. thanks! Steadyhand_chris https://www.blogger.com/profile/14823160849394184687noreply@blogger.com