GoodWishes
Recycles dryer sheets
- Joined
- Jul 3, 2013
- Messages
- 162
Our WR has been about 2.5%. We have everything we need/want. We travel, we eat out, we gift, we donate ... Not sure where we would spend more money on.
Some want to leave a legacy me thinks.
I don't have any children, so I'm gonna Blow That Dough!
I'm not sold on the idea that spending more money brings greater happiness. Sure, I'd like to leave less and spend more on me. Spending money to spend money just doesn't make me happy.
Some interesting responses to my question and pretty much what I thought they would be, i.e. "happy with life at that WR, so why would/should we take more". And certainly the 99.9% guarantee that with so low of a WR you could make it through Black Swans, Mega Depressions, etc and still come out in good shape does give a great deal of security.
I'm probably going to stick with 3.0 to 3.5 as that gives me a bit of extra slack but meets my needs.
Actually your 3.0 to 3.5 WR is pretty low to me..... (And I'm assuming that is inflation adjusted?) .... I use VPW which is safer than ANY Inflation Adjusted SWR. My current 2018 WR is 4.6% of Portfolio Balance. ... I have no trouble spending money -- two late model $60K Cars, Winters in the Bahamas, Australia, Hawaii....It's really quite easy for me to spend... If I had more money, I'd buy a Private Jet ...Money to me is not to be worshiped, if you don't spend it, someone else will ....Keeps the economy humming... You just have to plan to spend it, like you planned to save it... It's just Math..
When people here say that their SWR is 3.0%, I am guessing that no one here actually follows a plan of an Inflation Adjusted 3.0% WR ? - Correct?... I actually follow a plan of a VPW, just because I know it is "guaranteed " to work. This also 'forces' me to sell more equities in Up Markets and less in down Markets. (The reverse of dollar cost averaging).
Nevertheless, I am not sure how VPW is guaranteed to work. Yes, conceptually one will never run out of money, but the spending levels can still be too low in certain market scenarios to not fully support one's current lifestyle.
It's still a matter of planning... If you are only invested 30% in Stocks and have delayed S.S. to age 70 it is not a big problem. Say the Market drops 50% (Typical in a Severe Downturn)... Your Portfolio WR amount only Drops by 15% or so... Which is only part of your spending, because S.S. delayed amount is much higher. That is mostly a piece of cake for cutting spending.
So, that is how it is Guaranteed to work. (And if VPW doesn't work, you are pretty much talking about a Complete economic collapse, where any other Withdrawal Scheme will fare far worse.)
So, you should check it out!