Hi:
I am using FIRECalc to plan and prepare for my early retirement.
I am 43, I plan on retiring in the next 1 to 3 years, and if I take care of my health, I estimate that I could live to 88.
I have heard of the 4 percent safe withdrawal rate. I have also heard that those who plan for 40+ years of retirement should consider using 3 or 3.5 percent as a safe withdrawal rate.
I guess I want to know if FIRECalc factors in the length of my retirement plan in its analysis. I know I include the planned start year of my retirement and my life expectancy in FIRECalc. But does FIRECalc reduce the safe withdrawal rate when it does my forecasts?
If I am planning a long term retirement, are FIRECalc's outcomes as reliable as if I was planning a short term retirement? I want to make sure I am making a long term decision on good data and analysis. Thanks.
I am using FIRECalc to plan and prepare for my early retirement.
I am 43, I plan on retiring in the next 1 to 3 years, and if I take care of my health, I estimate that I could live to 88.
I have heard of the 4 percent safe withdrawal rate. I have also heard that those who plan for 40+ years of retirement should consider using 3 or 3.5 percent as a safe withdrawal rate.
I guess I want to know if FIRECalc factors in the length of my retirement plan in its analysis. I know I include the planned start year of my retirement and my life expectancy in FIRECalc. But does FIRECalc reduce the safe withdrawal rate when it does my forecasts?
If I am planning a long term retirement, are FIRECalc's outcomes as reliable as if I was planning a short term retirement? I want to make sure I am making a long term decision on good data and analysis. Thanks.