Bill Bengen's sliding SWR method

[galeno]

I subtract our expense and tax ratios from the SWR to find our highest net SWR. Check out and comment on the following:

Age % Stocks SWR
55 65 4.2
60 60 4.3
65 55 4.4
70 50 4.5
75 45 5.0
80 40 5.2
85 35 5.5
90 30 6.0

 

[samclem]

-I'm advising my MIL' on her finances, and we're using Bengen's numbers just like you are. Because it's not my money, I feel more comfortable sticking close to the recommendations of somebody who has done some research and has some credibility. At least it it blows up, I'll have a thin reed to hide behind.
- With our own money we'll probably use Bengen's withdrawal rates as a guide. I think they may overstate safe withdrawal reates going forward, so I'll use them for our pre-SS years and then probably cut back to about .5% less. We'll also keep higher equity exposures later into the game than he recommends (at least if Social Security and the pension promises remain unbroken).

A previous post on Bengen and the derivation of his numbers.

 

[audreyh1]

I subtract our expense and tax ratios from the SWR to find our highest net SWR. Check out and comment on the following:

Age % Stocks SWR
55 65 4.2
60 60 4.3
65 55 4.4
70 50 4.5
75 45 5.0
80 40 5.2
85 35 5.5
90 30 6.0

Sorry, I don't have the link for this, but I think Michael Kitces has a paper that shows the effect of

If you have a super low expense ratio like 0.1% it probably is a simple subtraction, but a high ER like 1% doesn't subtract the full 1% to get the net Safe WR - it was something in the ballpark of 0.65%. Something like that anyway.