Asset Valuations and Safe Portfolio Withdrawal Rates

Blanchett, David; Finke, Michael S.; Pfau, Wade D.

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Asset Valuations and Safe Portfolio Withdrawal Rates

Retirement Management Journal, Vol. 4, No. 1, 2014

16 Pages Posted: 20 Jul 2023

See all articles by David Blanchett

Wade D. Pfau

The American College for Financial Services; Retirement Researcher

There are 2 versions of this paper

Date Written: June 1, 2014

Abstract

This paper demonstrates that the safety of a given withdrawal strategy is significantly affected by the initial bond yield and cyclically adjusted price-to-earnings (CAPE) value at retirement, and that the relative impact varies based on the portfolio equity allocation.

Keywords: retirement, withdrawal strategy

JEL Classification: G10, G11

Suggested Citation: Suggested Citation

Blanchett, David and Finke, Michael S. and Pfau, Wade D., Asset Valuations and Safe Portfolio Withdrawal Rates (June 1, 2014). Retirement Management Journal, Vol. 4, No. 1, 2014, Available at SSRN: https://ssrn.com/abstract=4445598