Hi all,
For those who are constantly bugged by the 4% rate, here's something to make you feel better. Run firecalc, and input:
Withdrawals: 7
Starting portfolio: 100
Life span: 10
The result is 100% success, and the mean portfolio after 10 years is 114! But everyone's retirement lasts longer than 10 years. Well, run firecalc for another 10 years, this time use 114 for the starting portfolio, and 7.98 for withdrawals.
Again it will be 100% successful, and the new mean balance will be again greater.
Smile, you can retire much sooner now.
Sam
For those who are constantly bugged by the 4% rate, here's something to make you feel better. Run firecalc, and input:
Withdrawals: 7
Starting portfolio: 100
Life span: 10
The result is 100% success, and the mean portfolio after 10 years is 114! But everyone's retirement lasts longer than 10 years. Well, run firecalc for another 10 years, this time use 114 for the starting portfolio, and 7.98 for withdrawals.
Again it will be 100% successful, and the new mean balance will be again greater.
Smile, you can retire much sooner now.
Sam