Since many of us like to talk about our withdrawal rates at the beginning/end of the year... I figured I'd start a thread.
Please explain your method (is it WR based on initial portfolio value increased for inflation, is it WR based on beginning of the year portfolio value?)
I'll start.
2017:
We had a withdrawal rate of 2.71% based on initial portfolio (no increases for inflation yet...)
If I used the beginning of the year portfolio value it's similar - 2.70%.
2018:
If we use the same amount of withdrawal (which is likely) it would be 2.71% of initial portfolio or 2.43% of beginning of year portfolio. (Hello 2017 market gains!!!)
But... we might increase the spend/withdrawal a bit and go for a bit more...
That would put us at 3.05% of initial portfolio or 2.74% of beginning of year portfolio.
I'm still not comfortable taking out much more than that out of fear of Sequence of Returns Risk...
Please explain your method (is it WR based on initial portfolio value increased for inflation, is it WR based on beginning of the year portfolio value?)
I'll start.
2017:
We had a withdrawal rate of 2.71% based on initial portfolio (no increases for inflation yet...)
If I used the beginning of the year portfolio value it's similar - 2.70%.
2018:
If we use the same amount of withdrawal (which is likely) it would be 2.71% of initial portfolio or 2.43% of beginning of year portfolio. (Hello 2017 market gains!!!)
But... we might increase the spend/withdrawal a bit and go for a bit more...
That would put us at 3.05% of initial portfolio or 2.74% of beginning of year portfolio.
I'm still not comfortable taking out much more than that out of fear of Sequence of Returns Risk...