May 2009 Highlights

The Investment Strategy Tester

With the help of Rob Bennett, I have been able to bring the Investment Strategy Tester online. It automates the Scenario Surfer. Readers can prepare for today’s market and future markets as well. They can plan for the accumulation stage as well as the retirement stage of investing.

The October 2008 Meltdown

My readers were well prepared for the October 2008 stock market meltdown. I had written often about the Delayed Purchase strategy and the need to vary allocations in accordance with P/E10. Readers even had specific allocation suggestions. They had the Scenario Surfer available for training. Now, with the Investment Strategy Tester, they even have allocation algorithms for today.

Current Research

I extended the current research into L, When Price Drops Occur, and M, Weighted Earnings and N, Turning Points. Both Current Research L and Current Research N are relevant for today.

Safe Withdrawal Rates

In June 2008, the Safe Withdrawal Rate was 6% (plus inflation) with a Dividend Blend, Delayed Purchase and Income Investing. It was 5.5% (plus inflation) with Valuation Informed Indexing using corporate bonds and preferred stock. It was only 4.5% (plus inflation) or lower using alternative strategies.

Since the October 2008 meltdown, the reliable continuing Safe Withdrawal Rate is above 8% (plus inflation) with a Dividend Blend in spite of problems in the financial services industries.

Graphs Sections

I have introduced a Graphs button and a More Graphs button on the left. This makes many points easy to understand.

Featured Articles

Here are two articles that I like a lot:

Bad Advice

Retirees beware. What sounds sophisticated is no more than bad advice.

Bad Advice

Comfortable with $300K

Has your nest egg fallen in half, from $600K to $300K? Even if so, you will be able to retire in comfort. Depending upon your situation, this could be today or it might take a decade, but not longer.

Comfortable with $300K

Have fun.

John Walter Russell
May 2, 2009