How to calculate safe withdrawal rate for early retirement

[airforce1]

Does FIRECALC take into consideration a military pension?

 

[audreyh1]

Does FIRECALC take into consideration a military pension?

Yes, you can add pension and SS to your Firecalc model.

 

[Dtail]

Does FIRECALC take into consideration a military pension?

Yup, it is located in the 2nd tab "Other income/Spending" at the bottom of the page. You can also choose whether it is cola'd or not.

 

[PointBreeze]

RE at 57. 3% is my personal max, but we're only spending about 2.5% in a mildly fat FIRE.

+1. This is exactly our situation, although DP is significantly older than I so we have her social security.

 

[cooch96]

I use a variable percentage withdrawal (VPW) plan. When things go well (good returns and/or lower expenses) it allows you to spend more in the years following. If things go badly, it cuts your allowed spending in future years. Those changes are spread out over your remaining years, so you don't have to make drastic cuts.

+1. The author of VPW also suggests using your pension, SPIA, or something similar to cover your bare necessities. Thus, in terrible market returns, you won't have to literally tighten your belt, but you would likely have to live a more humble lifestyle.

 

[USGrant1962]

+1. The author of VPW also suggests using your pension, SPIA, or something similar to cover your bare necessities. Thus, in terrible market returns, you won't have to literally tighten your belt, but you would likely have to live a more humble lifestyle.

I laughed. What does another notch in my belt have to do with stock market returns? Losing weight because I can't afford food?

 

[cooch96]

I laughed. What does another notch in my belt have to do with stock market returns? Losing weight because I can't afford food?

Yes, of course. Isn't that the exact fear of many, running out of money before death? I fail to see the humor.

 

[ExFlyBoy5]

Yes, of course. Isn't that the exact fear of many, running out of money before death? I fail to see the humor.

I believe he was referring to your use of the word, "literally" which isn't used in the literal sense much these days.

+1. The author of VPW also suggests using your pension, SPIA, or something similar to cover your bare necessities. Thus, in terrible market returns, you won't have to literally tighten your belt, but you would likely have to live a more humble lifestyle.