Ozziedreamer
Dryer sheet aficionado
- Joined
- Jun 4, 2011
- Messages
- 29
Hi
This may have been posted as a thread before - if so, my apologies, as am a fairly new member to this forum.
Am looking for a quick rule of thumb people have generally used for safe withdrawal rates, and hence how much is needed for retirement - and particularly for those conservative/cautious amongst us, how much more than this was saved.
Over at early retirement extreme website, my read is that 4% is suggested for a 100% equity retirement account. So if your expenses are $40k pa, you need $1M in equities to retire. Now not everyone will want all their retirement monies in equities.
Have some people used much more conservative figures, eg say 2% or even 1%, therefore $40k pa requiring $2M or $4M respectively for a large margin of safety, and is that what they ended up doing before they retired. At 1%, you obviously need 100 times your expenses before retiring - I assume at 1% that most of your original capital remains intact when you die to be left to your beneficiaries or charities?
Interested to hear what people have used, including those planning to retire, and those already retired, for their own peace of mind.
This may have been posted as a thread before - if so, my apologies, as am a fairly new member to this forum.
Am looking for a quick rule of thumb people have generally used for safe withdrawal rates, and hence how much is needed for retirement - and particularly for those conservative/cautious amongst us, how much more than this was saved.
Over at early retirement extreme website, my read is that 4% is suggested for a 100% equity retirement account. So if your expenses are $40k pa, you need $1M in equities to retire. Now not everyone will want all their retirement monies in equities.
Have some people used much more conservative figures, eg say 2% or even 1%, therefore $40k pa requiring $2M or $4M respectively for a large margin of safety, and is that what they ended up doing before they retired. At 1%, you obviously need 100 times your expenses before retiring - I assume at 1% that most of your original capital remains intact when you die to be left to your beneficiaries or charities?
Interested to hear what people have used, including those planning to retire, and those already retired, for their own peace of mind.