TrophyWife
Recycles dryer sheets
- Joined
- Feb 23, 2016
- Messages
- 158
Do you take your same withdrawal each year from your total account at some arbitrary number that you decide is enough?
So if you decide on 4% and your number is 1,000,000 you would take $40,000 every year.
.....or would you adjust your number every year based on the size of your portfolio?
So if your portfolio grows to 1.5 mil, that year you'd take $60,000.
And then if it dropped in value, you'd adjust down accordingly.
My understanding of the research is, take that same number each year knowing some years your portfolio will be up and some years down.
Am I on track for this theory?
(Yes, I realize some people hold cash to use in the down markets so they don't have to pull out investments)
So if you decide on 4% and your number is 1,000,000 you would take $40,000 every year.
.....or would you adjust your number every year based on the size of your portfolio?
So if your portfolio grows to 1.5 mil, that year you'd take $60,000.
And then if it dropped in value, you'd adjust down accordingly.
My understanding of the research is, take that same number each year knowing some years your portfolio will be up and some years down.
Am I on track for this theory?
(Yes, I realize some people hold cash to use in the down markets so they don't have to pull out investments)