Vanguard Dynamic Spending Rule - AAII Jan 2017

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jmsaway
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Joined: Tue Jan 24, 2017 5:57 pm
Location: Lansdale, PA

Vanguard Dynamic Spending Rule - AAII Jan 2017

Post by jmsaway » Wed Jan 25, 2017 7:27 am

Can anyone provide the supporting math calculations that deliver they YR 2 & 3 ending balances of 1,069,740 and 1,079,154?
Is there a spreadsheet that does this?
https://advisors.vanguard.com/VGApp/iip ... LDynAppr_2

Sailor36
Posts: 19
Joined: Mon May 04, 2015 7:15 pm

Re: Vanguard Dynamic Spending Rule - AAII Jan 2017

Post by Sailor36 » Wed Jan 25, 2017 9:25 am

The link to the underlying research article is broken but if you Google the title you can download the article. Vanguard also has an updated and IMO clearer article on this strategy from Sept. 2016 titled "From assets to income: A goals-based approach to retirement spending" at https://personal.vanguard.com/pdf/ISGELR.pdf

If you follow the illustration in Appendix I, it should be clear how it works.

John Z
Posts: 266
Joined: Sun Nov 14, 2010 5:42 pm

Re: Vanguard Dynamic Spending Rule - AAII Jan 2017

Post by John Z » Wed Jan 25, 2017 10:16 am

Thank you for this info! I don't know how I missed it.

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