I’ve just started reading your new book and have a general question. Someone fortunate enough to be embarking upon retirement can use your ideas to set their own SAFEMAX but how would you advise those already in retirement? Go back to the beginning and figure a SAFEMAX retroactively, or start “fresh” with current portfolio valuations. (My apologies if this is discussed in a later chapter — I’m only up to page 88.) Thank you.  S,

Dear S.,

Thanks for your excellent question.

My feeling is that a withdrawal plan developed in mid-retirement should be constructed from scratch, with current inflation forecasts and stock market valuations. What’s past is past, and not really relevant.

The biggest issue is the “dovetailing” of current spending levels with those suggested by the new plan. It’s possible that a substantial change may be required. But it’s best to find that out now, rather than much later in retirement, when your flexibility is limited.

Best regards,

Bill Bengen