Afraid of FIRE

[FLSUnFIRE]

One thing to keep in mind is that just because you are in spending mode doesn't necessarily mean that your nestegg is declining... because withdrawal rates tend to be conservative and based on bad case scenarios... in many years even though you are withdrawing your portfolio will still be increasing... albeit at a slower rate because of withdrawals.

For example, the historical average total return for a 65/35 portfolio is about 7.4% according to Vanguard.... let's say that prospectively that returns are 20% lower.... that would be 5.9%... so if an early retiree is drawing 5.5% their portfolio would still be growing and more importantly psychologically, would not be declining.

Most definitely. In fact, my 401K should grow quite a bit (and my withdrawal) as I'll be using the RMD method for my SEPP which makes a pretty low WDR from that account at my age. Even the thought of working (at something I want to do) just enough to cover my expenses is so out of character after saving for so long. Since I do plan to have some earned income, I intend to keep my portfolio close to 100% equities (and run FIRECalc under that assumption).

 

[jcretire77]

Three years after retirement and we are 22% ahead of where we started. The markets have been good. I feel that the increase will give us ample buffer if/when the markets have a major correction.