search

boknows / cFIREsim-open

An attempt to re-write the popular retirement calculator (cFIREsim.com) in mainly javascript, and begin the journey toward open-source.
Apache License 2.0
152 stars 52 forks source link

FAQ explanation of Variable CAPE method is wrong #77

Open dmaniry opened 6 years ago

dmaniry commented 6 years ago

The CAPE method adjusts your retirement based on this valuation of the market (spending more in the boom times, and less in the down times).

It's actually the other way around to lower the percentage during market high to discount the portfolio value for potential overvaluation.

also discussed in this old thread: https://forum.mrmoneymustache.com/ask-a-mustachian/help-me-understand-the-variable-cape-swr/