4% Withdrawal - Golden No More (New York Times)

[ERD50]

Apparently, he is speaking of some other type of cash that has nothing to do with portfolio. At least on Tuesdays.

Ha

Ahhh, the 'Tuesday Cash' stash. Now I understand. As in "I'll gladly pay you Tuesday for a hamburger today".

-ERD50

 

[Richard4444]

Well, here's a different thought: I am 63. 25% is in IRA. At 65 I am considering beginning a ladder of SPIAs of 5% annually until 70, then laddering IRA SPIA's for 5 years beginning at 70. So that would account for 50% being in fixed instruments. The other 50% would be an AA TBD. This would 'guarantee' a forever income flow of 50% and the rest for inflation needs, emergencies, and beneficiaries.

 

[explanade]

Schwab says to start out at 4% and adjust:

Is the 4% Rule Still Appropriate?

BTW, is 4% including Social Security and all your different accounts, IRA as well as taxable accounts, 401k and cash?

Do you include home equity as well?

One thing I have to do before thinking of ER is to consolidate my accounts. Individual stocks here and there, mutual funds at different brokerages, etc.

 

[braumeister]

BTW, is 4% including Social Security and all your different accounts, IRA as well as taxable accounts, 401k and cash?

Do you include home equity as well?

The standard 4% (or whatever WR you choose to use) is based on the starting value of your investment portfolio, nothing else.

Assuming you have a very good handle on what your retirement expenses will be, you can use your WR, along with any other sources of income (SS, pensions, annuities, etc.) to get an idea of whether your expenses will be covered.

 

[mickeyd]

Schwab says to start out at 4% and adjust:

Is the 4% Rule Still Appropriate?

BTW, is 4% including Social Security and all your different accounts, IRA as well as taxable accounts, 401k and cash?

Do you include home equity as well?

One thing I have to do before thinking of ER is to consolidate my accounts. Individual stocks here and there, mutual funds at different brokerages, etc.

I have always assumed that SWR was refering to my entire portfolio of investments but not my home or income streams (SS, DB). In my case most of my investments are in my IRA/Roth.

 

[galeno]

We use a 3% AWR that needs to last us 40 years. FireCalc says we can spend 3.3% of port and still have a success rate of 100%.

 

[Huston55]

We use a 3% AWR that needs to last us 40 years. FireCalc says we can spend 3.3% of port and still have a success rate of 100%.

Are you still using the same AA and withdrawal method (6 yrs of cash, etc)?

Would like to hear how it's worked for you the past 5+ yrs.