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http://www.scribd.com/doc/229555587/Tax ... t-May-2014
Retirement's Volatility Bogeyman
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MachineGhost
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Retirement's Volatility Bogeyman
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: Retirement's Volatility Bogeyman
That's really interesting. Thanks for sharing.
One more reason to like the PP as a retirement portfolio.
One more reason to like the PP as a retirement portfolio.
Re: Retirement's Volatility Bogeyman
Interesting but I don't entirely understand. Does this essentially mean you are selling equities when the volatility goes up? Can the results be due to correlation between volatility and momentum signals? Ie is it really volatility that is important here or market timing?
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MachineGhost
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Re: Retirement's Volatility Bogeyman
Yeah, its basically rebalancing when the volatility gets too out of whack. Commissions and taxes need to be fully figured into this before deciding on something as frequent as a monthly check. I suppose this is a form of market timing without market timing just as band rebalancing is.dragoncar wrote: Interesting but I don't entirely understand. Does this essentially mean you are selling equities when the volatility goes up? Can the results be due to correlation between volatility and momentum signals? Ie is it really volatility that is important here or market timing?
"All generous minds have a horror of what are commonly called 'Facts'. They are the brute beasts of the intellectual domain." -- Thomas Hobbes
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Disclaimer: I am not a broker, dealer, investment advisor, physician, theologian or prophet. I should not be considered as legally permitted to render such advice!
Re: Retirement's Volatility Bogeyman
...or you can simply stick to a well-diversified portfolio that delivers comparable average returns with a fraction of the volatility of a traditional stock/bond mix.
The study is interesting, as it helps explain some of the research I've done for a PP SWR. The idea that lowering volatility on the same rate of return can increase your SWR helps explain how the PP has historically done so well for a retiree relative to many other portfolios.
The study is interesting, as it helps explain some of the research I've done for a PP SWR. The idea that lowering volatility on the same rate of return can increase your SWR helps explain how the PP has historically done so well for a retiree relative to many other portfolios.
Last edited by Tyler on Sun Jun 15, 2014 12:43 pm, edited 1 time in total.