tag:blogger.com,1999:blog-5465015914589377788.post3865840115493902506..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Short Takes: Breaking a Mortgage, Buying Low, and moreMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-5465015914589377788.post-46778573017983922142015-07-23T13:05:27.244-04:002015-07-23T13:05:27.244-04:00@DGI: I pointed out that Robb's 6%+ withdrawal...@DGI: I pointed out that Robb's 6%+ withdrawal rate was unrealistic. He said he agreed. Maybe he had his pension in mind the whole time and maybe he changed his mind. Either way, we seem to agree that withdrawal rates need to be much lower than 6% to be safe. What else is there to say after we apparently now agree?<br /><br />The difference between Robb and you is that he sticks to discussing the topic at hand rather than resorting to ad hominem attacks. If I think you are wrong about an important point and I care to write about it, I will. None of this is personal for me. I make a point of reading the writing of those I disagree with. That is how I learned enough to slowly made the switch from stock picking to indexing. The case for indexing is so strong that I don't expect to ever change again, but it's not impossible.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-17841402810237235382015-07-23T12:15:32.780-04:002015-07-23T12:15:32.780-04:00I am surprised you wrote at length about an articl...I am surprised you wrote at length about an article I had written, but just mentioned the 6% withdrawal rate discussed by Robb in passing. And you took his comment about pension income at face value, when in reality the word pension is not used in the article from Robb. Hence, the article IS advocating a 6% withdrawal rate, any way you look at it (assuming you are an unbiased observer).<br /><br />Even if you believe that what I was saying was "dumb", it has no real world repercussions to investors. You have yourself stated that a portfolio of dividend stocks will likely do similar to index funds (within 1% or so difference). So there is not danger to investors ( in your mind according to what you have stated on the site) However, any serious index investor worth their salt knows that a 6% withdrawal rate in retirement has a big chance of failure. Hence, by posting an article about my "silly" article, but not on Robbs "article" you are doing your readers a disservice. ( due to your judgment being clouded, possibly by envy)<br /><br />Not sure what your real beef it is with my work, but I am happy that it makes a difference in your life.<br /><br />You know, if I manage to anger all index investors in the world, maybe they will be smart enough and pass my article around on their blogs, forums, etc. Dividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-29177990306379940932015-04-28T21:54:57.105-04:002015-04-28T21:54:57.105-04:00@Anonymous: Robb explained that he didn't inte...@Anonymous: Robb explained that he didn't intend to advocate such a high withdrawal rate. His income included pension income.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-67125019341725254272015-04-28T21:29:31.690-04:002015-04-28T21:29:31.690-04:00Oh man, a 6% withdrawal has a 40% chance of failur...Oh man, a 6% withdrawal has a 40% chance of failure over a 30 year period for an all stock portfolio. I sure am hopeful Robb doesn't advise his clients to withdraw all they want from their portfolios.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-15983373211271843022015-04-26T19:04:44.626-04:002015-04-26T19:04:44.626-04:00Given how some of my co-workers choose their tax p...Given how some of my co-workers choose their tax preparers, maybe not so tongue in cheek, but thanks for the link.Big Cajun Man (AW)http://www.canajunfinances.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-2623302286838636562015-04-26T11:51:45.517-04:002015-04-26T11:51:45.517-04:00I am thinking that although there is no cap on the...I am thinking that although there is no cap on the TFSA, that the de-indexing almost acts like one over time....but a lot can change in 20 or 30 years...Garthhttps://www.blogger.com/profile/14367654772040176371noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-91289471644898894992015-04-26T11:35:42.287-04:002015-04-26T11:35:42.287-04:00@Garth: I'll give it some thought.@Garth: I'll give it some thought.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-81895475254963965592015-04-26T10:17:39.103-04:002015-04-26T10:17:39.103-04:00Hi Michael
I would love to see you do an article o...Hi Michael<br />I would love to see you do an article on what the Time Value of Money will do to unused and future TFSA contribution room now that it is no longer indexed to inflation. I suspect the effects could quite detrimental over 30 years or so...<br /><br />Thanks<br />GarthGarthhttps://www.blogger.com/profile/14367654772040176371noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-20873284231299732222015-04-24T11:20:57.637-04:002015-04-24T11:20:57.637-04:00@Robb: That makes sense. I've got the expecte...@Robb: That makes sense. I've got the expected CPP and OAS payments for myself and my wife baked into a spreadsheet that calculates my best guess of a safe spending level.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-57155913610237831622015-04-24T11:14:25.586-04:002015-04-24T11:14:25.586-04:00What I failed to properly explain was that I don&#...What I failed to properly explain was that I don't actually need $90k/yr (that was a pipe dream from a 2010 idea) and, since I have a workplace pension, won't have to rely solely on my investments in retirement. I agree that safe withdrawal is more likely between 3-4% annually.Robb Engenhttp://www.boomerandecho.comnoreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-33038009395400401232015-04-24T09:26:41.657-04:002015-04-24T09:26:41.657-04:00@Robb: I'm with you on the total return focus....@Robb: I'm with you on the total return focus. I've definitely seen advisors who think 5% or more withdrawal is fine. However, these advisors usually either ignore future inflation or they claim people naturally want to spend less after their 60s. However, the only study I've seen to examine this point found that most people are forced to spend less after their first few years of retirement because their funds are dwindling.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-28455982770646844882015-04-24T09:12:44.856-04:002015-04-24T09:12:44.856-04:00I tried to explain one idea and ended up bungling ...I tried to explain one idea and ended up bungling another. Not the first time. Thanks for the mention!Robb Engenhttp://www.boomerandecho.comnoreply@blogger.com