Withdrawals dipping below spending floor

hnzw rui
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Joined: Thu Oct 29, 2015 7:27 pm

Withdrawals dipping below spending floor

Postby hnzw rui » Thu Oct 29, 2015 8:09 pm

Heya. Thanks for this calculator. Very useful. One bug I encountered is withdrawals dipping below a defined value spending floor. It doesn't always do it. It seems the calculator only does this when the portfolio balance gets too low.

ID#: 488 42k floor -> 100% success rate but withdrawal dips to 22K -> not ok
ID#: 489 36k floor -> 100% success rate -> ok

Imho, instead of allowing withdrawals to dip below the spending floor, probably better to mark those scenarios as failures. Thanks.

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Joined: Sat Oct 11, 2014 5:28 pm

Re: Withdrawals dipping below spending floor

Postby forummm » Tue Jun 21, 2016 5:28 pm

This appears to still be a problem. It took me awhile to figure out that this was going on. Turns out my real success rates aren't quite as high as reported.

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Re: Withdrawals dipping below spending floor

Postby bo_knows » Fri Aug 05, 2016 2:03 pm

Some of these only dip below the floor at the very end of a simulation, and that is because cFIREsim doesn't allow the simulation to withdraw more money than is in the portfolio.

If, for instance, you have a 40k spending level... and in year 30 you have 22k in your portfolio. Your simulation will "spend" 22k and then zero out as a failure.

It's probably not as clear as it should be, but I don't think it's wrong in any way.
-Bo (Creator and Admin for cFIREsim)

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