There is no question but that my attendance at the Vanguard Diehards meeting would have brought the Campaign of Terror to an immediate end.
[link]Comment on "Those Who Retired Back in 2000 May Ultimately Find That the "4% SWR" Was Still Far Too Aggressive&
Submitted by Anonymous on Thu, 2008-10-09 13:02.
Michael Kitces wrote:
So what should we do from here? Well, the “good” news is that today’s valuations are no longer anywhere near the year 2000 extremes. Instead, we’re merely in the “high” valuation environment that produced the kind of 4% safe withdrawal rates we’ve seen at similar high valuation points in history - which means we should be comfortable with the 4% safe withdrawal rates being applied today.
It has become even better for someone starting out today. Look at the dividend yields of GE, PFE and MRK (General Electric, Pfizer, Merck). All are well above 5%.
Today’s P/E10 is below 17.
TIPS yields to maturity are all above 2%, most above 2.5%.
Those who have waited will be rewarded.
Have fun.
John Walter Russell