This may sound like a dumb question but I would like to confirm the mechanics of calculating our withdrawal rate. We are in our first year of ER and our spending is about where we expected so far but I realized I'm not sure how the calculation works. Is it as simple as:
Amount of cash expended for all purposes for the year including taxes/beginning of year portfolio balance?
Assuming your portfolio contains tax deferred assets, do you use the net expected after-tax value for those assets, or the gross value in your calculation?
I tried searching prior posts for this info but there are so many posts about WR's, I couldn't easily find this info. Thanks!
Amount of cash expended for all purposes for the year including taxes/beginning of year portfolio balance?
Assuming your portfolio contains tax deferred assets, do you use the net expected after-tax value for those assets, or the gross value in your calculation?
I tried searching prior posts for this info but there are so many posts about WR's, I couldn't easily find this info. Thanks!