Hello all. Some of you know me from other similar forums. This is my first post here.
Anyway, my question has to do with SWR for a very early retiree. I am 45 and my wife is 42. I plan to retire soon and hopefully our joint life expectancy is 90+. My concerns is that the 4% rule for 30 year "safety" might not work at 50 years. Dr. Bernstein seems to hint that 2% is the number. Larry Swedroe, another finance guru who has written on this topic seems to think 3% is OK. And while it seems like similar results, the truth is that I can live 50% better on 3% than on a 2% initial withdrawal rate adjusted for inflation on a 55/45 portfolio.
What do you folks think?
Anyway, my question has to do with SWR for a very early retiree. I am 45 and my wife is 42. I plan to retire soon and hopefully our joint life expectancy is 90+. My concerns is that the 4% rule for 30 year "safety" might not work at 50 years. Dr. Bernstein seems to hint that 2% is the number. Larry Swedroe, another finance guru who has written on this topic seems to think 3% is OK. And while it seems like similar results, the truth is that I can live 50% better on 3% than on a 2% initial withdrawal rate adjusted for inflation on a 55/45 portfolio.
What do you folks think?