When I'm using ***** or Firecalc, or really any planner, it asks for a yearly spending number. The program runs spits out my yearly distrubution amounts. Those distributions have to cover my spending plus taxes. So my distribution amounts are probably higher than my expenses in the early years. But then I eventually get SS. So I don't need as much distrubtion. So in the later years my distributions could be less than my expense number.
Long story short, which number do I look at for the 4% rule - the $130,000 or the average of my annual disributions? Maybe my expenses are $130k but my average distribution over all years was only $120k. I was thinking the distribution number because those are the actual withdraws right? But ***** and FIREcalc don't tell me the distribtutions right?
Long story short, which number do I look at for the 4% rule - the $130,000 or the average of my annual disributions? Maybe my expenses are $130k but my average distribution over all years was only $120k. I was thinking the distribution number because those are the actual withdraws right? But ***** and FIREcalc don't tell me the distribtutions right?