Michael wrote an article
on safe withdrawal rates not too long ago that leaves a bit to be desired in my assessment.
Not exact matches
I'm going to assume it's
not passive since 800k couldn't reasonably generate that much based
on a
safe withdrawal rate.
Based
on the
safe withdrawal rate of 4 %, I could retire
on a $ 300,000
nest egg instead of the $ 1,000,000 or so I would need if I remained in Europe.
The
safe withdrawal rate is
not a constant number but VARIES with changes in the valuation level that applies
on the day the retirement begins.
Safe Withdrawal Rates with Switching Since You Can't Count
on 7 % If it were a decade from now and you had $ 572K, you would have it made.
References:
Safe Withdrawal Rates with Switching and Since You Can't Count
on 7 %.
It is important to remember that this SWR Translator calculates a
Safe Withdrawal Rate only if its input (the annualized total return of the portfolio at a specified number of years) is a mathematical calculation based
on information up to a specific date but
not later.
Historical Index Data True Buy - and - Hold Investing, TIPS and I Bonds Letter about You Can't Count
on 7 % Articles Mortgage Backed Securities P / E10 Graph, Zvi Bodie's Book and more TIPS and taxable (non-qualified) accounts
SAFE and HAZARDOUS REGIONS Safe Withdrawal Rates and Historical Surviving Withdrawal Rates Have
SAFE and HAZARDOUS REGIONS
Safe Withdrawal Rates and Historical Surviving Withdrawal Rates Have
Safe Withdrawal Rates and Historical Surviving
Withdrawal Rates Have fun.
True Buy - and - Hold Investing, TIPS and I Bonds Letter about You Can't Count
on 7 % Articles Mortgage Backed Securities P / E10 Graph, Zvi Bodie's Book and more TIPS and taxable (non-qualified) accounts
Safe Withdrawal Rates and Historical Surviving
Withdrawal Rates Have fun.
Based
on the
safe withdrawal rate of 4 %, I could retire
on a $ 300,000
nest egg instead of the $ 1,000,000 or so I would need if I remained in Europe.
They understand the stakes of permitting honest posting
on something like
safe withdrawal rates or the Plan B gibberish (even if they do
not possess a full understanding of the investing realities).
Withdrawing 10K per month
on a 2.1 M
nest egg would be spending nearly 6 % per year which seems way above today's 3 % «
safe withdrawal rate» for permanent retirees.
You know that 4 %
safe withdrawal rate that me and other early retirement bloggers go
on and
on about, which is suppose to be the amount you can safely pull out each year and
not run out of cash over a 30 year time frame.
I have seen some pretty nonsensical information
on highly - regarded blogs:
on safe withdrawal rates (nope, a 50 % equity / 50 % bond portfolio will
not last very long at a 5 %
withdrawal rate),
on Robo - advisers (
not worth the extra fee) and other topics.
Assuming a
safe withdrawal rate of 4 %, a million will allow you to live
on $ 40,000 yearly without depleting your
nest egg.
Juicy Excerpt: I knew that the
safe withdrawal rate studies did
not contain adjustments for the valuation level that applies
on the day the retirement begins.
And so it is obviously
not possible to determine whether a specified
withdrawal rate is
safe or
not without taking into account the valuation level that applies
on the day the retirement begins.
Ataloss argued that the reason why I say that the Old School
safe -
withdrawal -
rate (SWR) studies are analytically invalid is that I don't approve of relying
on historical stock - return data to determine the SWR.
I say that permitting honest posting
on safe withdrawal rates and scores of other critically important investment - related topics is the FIRST step,
not the last step, Drip Guy.
Why
not enjoy the benefits of that instead of arguing over whether honest posting
on safe withdrawal rates should be permitted?