It's in my signature line.
I assumed people saw my signature, until I logged in on the mobile app where they don't display it. Or it didn't show for me .
It's in my signature line.
.3% WR for 2018.
Doesn't anyone more or less wing it I know I'll be fine if I spend <2% and probably okay if I spend <4%, and I'm planning to just buy what I want, generally, which is what I've done for the past 20 years, and spent an amount about = 3%.
There are always aberrations - kitchen remodel, rental house that needs a new roof... etc. but generally speaking that's a good average.
If you retire early, use FIRECALC, and anticipate having SS or a pension kick in at some point, the number of years from your retirement date to the other income kicking in is the key that relates to SORR.SORR has the same conundrum. Let's say this first 5 years for you were just average. After 5 years, supposedly your SORR risk is now over, but for your friend it is just starting. How does that make any sense? You're in the same position, so don't you have the same risk?
I already factor in my future SS and pension benefits by giving them a NPV, and including those amounts in my investment net worth that I base my WR on. There are other ways to factor this in, but this is what makes sense to me so that's what I use. I know I'm probably in the minority.If you retire early, use FIRECALC, and anticipate having SS or a pension kick in at some point, the number of years from your retirement date to the other income kicking in is the key that relates to SORR.
Let's say you start with $2.5M, and plan to start with a SWR of 4% ($100K annually). You don't enter SS or any other future income. Your first possbility of failure comes after ~22 years, and you have an 85% success rate.
Now, let's add in SS, 15 years after retirement. Your succes rate goes up to 100%! Once you start taking pension/SS, it's assumed that your distributions from your initial nest egg are reduced by that amount, and that the risk to the SS is theoretically 0.
IF my nest egg is (inflation-adjusted) close to the same or greater than it was when I retired, when start SS, I'm planning to recalculate my SWR, and increase my spending.
You are asking for people to open their financial kimono to you, and for what? I wouldn't give that information out to virtually anyone, let alone some anonymous person or entity on a web site.
no, in 3 years of retirement it has been .5% or lower. The wife is taking SS so it dropped a little more. It isn't like we are eating cat food or living in a cellar it is just what it is. We spend on what ever, when ever just don't need anything big or outrageous. LolWhoa!
Did you not have a WR of 1.5% earlier or something, and now it dropped even more?
no, in 3 years of retirement it has been .5% or lower. The wife is taking SS so it dropped a little more. It isn't like we are eating cat food or living in a cellar it is just what it is. We spend on what ever, when ever just don't need anything big or outrageous. Lol
If you're taking 6% for more than 11 years before SS/pension kicks in, you do have significant SORR, and you may deplete your assets before you start SS/pensions. FIRECALC gives you a 38.5% success rate. For most people, the only SORR that they really need to worry about is making it to that first SS payment (assuming they're not FAT FIRE).I already factor in my future SS and pension benefits by giving them a NPV, and including those amounts in my investment net worth that I base my WR on...Not counting SS and pension right now, I might take 6% now, and then 2% once those start. (I didn't calculate the actual values.) The 6% withdrawal may look high but knowing that I have SS+pension coming, it's fine.
Retired in at end of 2011 at age 56
Target AA is 65% stock/35% fixed income/5% cash
Current portfolio is 125% of what it was when I retired... if I consider our winter condo that was paid for from the portfolio to be an asset of the portfolio, then make that 135%.
Retired with ~25x expenses
Fixed pension started in 2016... covers about 20% of expenses.
No SS yet... DW will start at her FRA of 66 + 2 months and I'll likely start at 70.
WR for 2018 and 2017 was ~3.6%.
I just wanted to clarify... we don't live slavishly to a withdrawal percentage. Quite the opposite.
We withdraw what we want/need to spend... our spending is constrained by our sense of values...