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Old 07-23-2021, 03:54 PM   #41
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That makes sense if my portfolio is growing more than 4%. I get more money to spend. How much should I be in Bonds after RE?
Asset allocation (AA) and other sources of income matter. The 4% “rule” is based on only having invested asset return to live on and the goal of not using principal. Pensions, SS, annuities, target asset value at death, etc could change the appropriate %.

AA can depend on age, life expectancy, WR target, asset class comfort levels, target asset value at death, and many other factors.
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Old 07-23-2021, 04:18 PM   #42
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Originally Posted by WhenIsItTime View Post
Asset allocation (AA) and other sources of income matter. The 4% “rule” is based on only having invested asset return to live on and the goal of not using principal. Pensions, SS, annuities, target asset value at death, etc could change the appropriate %.

AA can depend on age, life expectancy, WR target, asset class comfort levels, target asset value at death, and many other factors.
No, the 4% rule is not only using income generated from the assets. It does dip into principal. That's the whole point - to model how long your principal will last.

If you never touch principal the answer is already known - forever.
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Old 07-27-2021, 05:11 PM   #43
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Why is the emphasis of first year 4% SWR important?

Does the 4% rule change as years go by in retirement?

from the Efficient frontier:


Clearly shorter retirements (or older retirees) can take a higher payout and vice versa
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Old 07-27-2021, 05:56 PM   #44
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Never ceases to amaze me how many people, even some regulars here, don't know the basics of the 4% SWR studies, what it is and is NOT. As true today as it was in 2008 when I joined ER.org. Beginning with Bengen in 1994 and Trinity in 1998, there have been countless articles and subsequent studies and updates that can be found in seconds using any search engine.
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Target WR: Approx 1.5% Approx 20% SI (secure income, SS only)
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