Analytically Invalid Methodology

7) The seventh tenet of Valuation-Informed Indexing is that the conventional safe withdrawal rate methodology is analytically invalid for purposes of determining safe withdrawal rates.

The conventional methodology selects the smallest among many Historical Surviving Withdrawal Rates and calls it the Safe Withdrawal Rate. This causes all sorts of problems.

Here are a few links that address this issue.

Paradoxes and Confusion
Apples and Pears
The Logical Sequence

Have fun.

John Walter Russell
November 6, 2005