Dr. Paul Kaplan
speaker
479 appearances
1 recordings
1 series
first heard Jul 2026
last heard 9 Jul
Dr. Paul Kaplan’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 1 in all, peaking in Jul 2026 with 1.
Appearances
They just have like a method of solving for it.
We made some simplifying assumptions in the book that do allow us to actually give
a mathematical formula for how much your level of consumption be year in and year out, depending on market returns.
Your exposure to those market returns depends on your risk tolerance.
So if you have a very low level of risk tolerance, it's going to be less volatile.
If you have a high level of risk tolerance, it'll be more volatile.
One way to look at life cycles for dances is a critique of those methods.
So those methods are ad hoc.
They have no economic theory behind them.
The 4% rule in particular came from a study done decades ago using historical data.
And then every so often, somebody reruns the study and they come up with a different number.
We don't think that's a very useful exercise.
We think investors should be advised to take a holistic way and to focus on their consumption and not on a spending percentage.
In chapter six of the book, we present all the math and everything behind that.
So if the person is retired, they're living off their savings that are invested and according to their, the asset allocation being according to their risk tolerance, then year in and year out, they're gonna vary their consumption
basically on the performance of their portfolio versus, say, like the 4% rule.
You spend the same amount of money year in and year out adjusted for inflation.
If market returns go very badly for you, particularly at the beginning of your retirement, you can run out of money.
I mean, a lot's been written about that, but...
Why run out of money?
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