Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I was just watching Frontline - Retirement Gamble, and once again I heard someone use a rule of thumb much lower than the 25X annual spending that comes from the 4% SWR methodology (in green in tables below). I've heard much lower, this time is was "10 to 15 times", though I assume they're planning on Soc Sec to provide additional income. They never go on to say, unless in the fine print somewhere.
Just for giggles I built some quick tables to show how many times annual spending one would need for various durations and success rates.
FWIW...
X times annual spending required
Years|Succ|ess |Rate
|95%| 75%| 50% 40| 27| 23|1 9 35|2 6| 23| 18 30| 25| 21| 17 25| 23| 19| 15 20| 21| 16| 12 15| 17| 13| 10
same thing in portfolio $ ('000's) to support $30K/yr initial spending, inflation adjusted
Years|Succ|ess |Rate
40| $810| $700| $571 35| $782| $676| $546 30| $755| $633| $505 25| $701| $570| $446 20| $618| $491| $373 15| $515| $388| $311
Just for giggles I built some quick tables to show how many times annual spending one would need for various durations and success rates.
FWIW...
X times annual spending required
|95%| 75%| 50% 40| 27| 23|1 9 35|2 6| 23| 18 30| 25| 21| 17 25| 23| 19| 15 20| 21| 16| 12 15| 17| 13| 10
same thing in portfolio $ ('000's) to support $30K/yr initial spending, inflation adjusted
40| $810| $700| $571 35| $782| $676| $546 30| $755| $633| $505 25| $701| $570| $446 20| $618| $491| $373 15| $515| $388| $311