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Re: Square Root Rule Application When Withdrawing Capital [Re: jcl] #442528
06/24/14 14:24
06/24/14 14:24
Joined: Jun 2013
Posts: 1,609
D
DdlV Offline OP
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DdlV  Offline OP
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D

Joined: Jun 2013
Posts: 1,609
Thanks jcl.

What are your thoughts of the relative benefits of reinvestment risk reduction compared to other risk factors?

Thanks.

Re: Square Root Rule Application When Withdrawing Capital [Re: DdlV] #442549
06/25/14 05:49
06/25/14 05:49
Joined: Jul 2000
Posts: 28,133
Frankfurt
jcl Offline

Chief Engineer
jcl  Offline

Chief Engineer

Joined: Jul 2000
Posts: 28,133
Frankfurt
It is smaller.

Re: Square Root Rule Application When Withdrawing Capital [Re: jcl] #442559
06/25/14 12:33
06/25/14 12:33
Joined: Jun 2013
Posts: 1,609
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DdlV Offline OP
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DdlV  Offline OP
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Joined: Jun 2013
Posts: 1,609
Hmmm...

In that case, it would seem there should be a way to increase Capital to reset onto the (new) linear path? Or is that impossible to calculate? Or more trouble to calculate than it's worth?

Thanks.

Re: Square Root Rule Application When Withdrawing Capital [Re: DdlV] #442563
06/25/14 15:06
06/25/14 15:06
Joined: Jul 2000
Posts: 28,133
Frankfurt
jcl Offline

Chief Engineer
jcl  Offline

Chief Engineer

Joined: Jul 2000
Posts: 28,133
Frankfurt
It's easy to calculate, but, as you said, not worth it. But if you want, just do it.

Re: Square Root Rule Application When Withdrawing Capital [Re: jcl] #442569
06/25/14 17:41
06/25/14 17:41
Joined: Jun 2013
Posts: 1,609
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DdlV Offline OP
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DdlV  Offline OP
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Joined: Jun 2013
Posts: 1,609
Thanks.

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