Join Early Retirement Today
Thread Tools Search this Thread Display Modes
SWR of 6.21% for 26 years
Old 03-25-2004, 07:22 AM   #1
Recycles dryer sheets
Join Date: Jul 2003
Posts: 70
SWR of 6.21% for 26 years

If you retire now (at S&P around 1100), your SWR should be about 6.21%, given the assumption that the 30 yr period 2000-2029 would not be worse than the worst 30 year period from the past.

Reason: If you had $1000000 at the beginning of 2000, FIRECalc will tell you that your SWR for 30yrs is 4.19%, using the defaults. If you stick to 4.19% withdrawal, at the end of 2003, your nest egg will be about $674000. Yet, you should be OK to continue withdrawing $41900, plus inflation adjustment til 2029. Hence, if you had $1mil at the end of 2003, then you should be able to withdraw $41900*1000000/674000=$62166, or about 6.22% annually, inflation adjusted. Of course, if you believe that 2000-2029 period will be worse than the worst we've ever experienced, then your personal SWR will be less than that.

amt is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: SWR of 6.21% for 26 years
Old 03-25-2004, 07:41 AM   #2
Posts: n/a
Re: SWR of 6.21% for 26 years

I must confess that I am a bit amused by all the
folks who think SS might disappear somehow. The
people at or near SS age are the biggest % voting
block. Plus, the way our government throws money around,
along with a pretty continuous trend toward
socialism, makes me think it more likely that older
people will receive more financial support in the future, not less.
Even George W. Bush spends it like there is no
tomorrow. Imagine what a real liberal might do.

John Galt
  Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
2% SWR firewhen Hi, I am... 17 12-27-2006 06:49 PM
Will you stay 5 more years for $1,000,000? honobob Other topics 18 12-17-2006 09:31 AM
Strategy for a (substantially) higher withdrawal hankjoy FIRE and Money 87 05-24-2004 08:18 PM
SWR, terminal values, TIPS, I-bnds & comm paper sgeeeee FIRE and Money 144 02-25-2004 03:35 PM
$50 a day? No way! patnbj FIRE and Money 112 01-30-2004 08:21 PM


All times are GMT -6. The time now is 08:36 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2016, vBulletin Solutions, Inc.