inquisitiveinvestor
Confused about dryer sheets
- Joined
- Apr 21, 2013
- Messages
- 1
Basically I'm trying to determine what level I can sustainably "live it up" to while retaining the ability to stop working at any point in time. I've saved up enough to where I could use the "traditional" SWR rate of 4% with some modest changes to my current spending habits (relocation within the same metro area). Although this is difficult to account for, this includes an assumed 10% of spending on health care (assuming health insurance subsidy of premiums above 9.5% of income through the PPACA exchange subsidies).
However, a lot of what I've read has me second guessing, as 3% is becoming the more commonly stated SWR for a typical retirement age, and many even reporting 1% or 2% as their SWR.
The likelihood that I would stop working completely and never go back (which would be a very early retirement) is relatively low, as I would probably want to do something part time for a while just to keep myself active and reduce the temptation to spend during idle time. I also want to avoid getting used to a higher spending level in the short term only to have to reduce it later, but would like to be able to enjoy as much as possible without endangering my financial independence.
However, a lot of what I've read has me second guessing, as 3% is becoming the more commonly stated SWR for a typical retirement age, and many even reporting 1% or 2% as their SWR.
The likelihood that I would stop working completely and never go back (which would be a very early retirement) is relatively low, as I would probably want to do something part time for a while just to keep myself active and reduce the temptation to spend during idle time. I also want to avoid getting used to a higher spending level in the short term only to have to reduce it later, but would like to be able to enjoy as much as possible without endangering my financial independence.