5min chapter

Bogleheads® Live cover image

Derek Tharp: spending in retirement

Bogleheads® Live

CHAPTER

How to Use Monte Carlo to Maximize Returns

The 4% withdrawal rule or the guardrail methodology are based on historical performance. With Monte Carlo, there it obviously comes down to what we're using for our capital market assumption. It is about that 10-year time period where we have the most historical reliability in terms of being able to make some adjustments.

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