Question about SWR

[NW-Bound]

I think anything below 4% would be fine. Chances are that most people with a WR of less than 4% would die before going broke.

And if you are lucky to live another 30 years, near the end you would not care much about anything anyway.

PS. Forgot that the above does not apply to youngsters who ER'ed in their 40s.

 

[Cut-Throat]

I think anything below 4% would be fine. Chances are that most people with a WR of less than 4% would die before going broke.

Well, sure it would ! ..... But why shortchange yourself..... You might find that 5% or more of Portfolio Balance would also work.... And be safer also!

 

[NW-Bound]

As mentioned earlier, it looks like my expenses will be 2.5% WR this year, unless the market crashes.

We have all that we desire, and feel no urge to "blow any dough". But people who want to spend more can do so. As long as the 4 or 5% WR has a lot of discretionary items that you can cut back, it should be OK.

 

[Cut-Throat]

As mentioned earlier, it looks like my expenses will be 2.5% WR this year, unless the market crashes.

We have all that we desire, and feel no urge to "blow any dough". But people who want to spend more can do so. As long as the 4 or 5% WR has a lot of discretionary items that you can cut back, it should be OK.

The Portfolio drives Expenses... If I had 'Private Jet' Money, I'd buy one. And it would become part of my 'Expenses'. Since I don't have Private Jet Money, I craft my Expenses based on my Portfolio and Withdrawal Rate....

I'm sure I could live (Or eek By) on a less than 1% Withdrawal Rate, but that was not MY Retirement Dream. But, I don't kid myself that I have all that I desire. That's just being honest and human nature.

 

[NW-Bound]

Dunno about 1% WR. That's too tough. I am not that rich, nor that frugal. Well, maybe 1% WR with future SS.

It is true that I do not have all that I desire. But what I really want is something I cannot afford (a nice waterfront home on Bainbridge Island, specifically on Rockaway Beach Rd). What I can afford like a fancy car, I have no desire for.

In other words, raising 2.5% WR to 4% does not make me happier. It would take quite a bit more.

PS. My WR dropped because 1) I no longer have expenses in the past like my children college costs, helping them buy their 1st home, etc..., and 2) my stash grew. Still have the same living standards, and upgrading it will cost a lot for diminishing returns.

 

[Cut-Throat]

In other words, raising 2.5% WR to 4% does not make me happier. It would take quite a bit more.

Again, don't confuse Withdrawal Rate with Spending... You don't have to spend it.

 

[NW-Bound]

Again, don't confuse Withdrawal Rate with Spending... You don't have to spend it.

And again, we have been there before; it depends on how one defines "withdraw".

 

[Cut-Throat]

And again, we have been there before; it depends on how one defines "withdraw".

We have been there before, but that does not address the OP's Question, and he is not operating as you do (e.g. - Counting the Cash in your Pocket as Part of your Portfolio and Asset Allocation) .... So here is the OP's Question.........

This may have been covered already, but had a question about SWR.
I withdraw from my account what I need each quarter for my expenses.
My WR for 2017 ended up being 3.3% of the total portfolio.


Does it make sense to take a full 4% even though I don't need that much? This way if the balance goes down the leftover money I have from taking out more than I need will be available as excess. Meaning should I just take 4% even if it's more than I need ?

Personally, I withdraw once a year on January 1st and it goes into my Cash Account (Never to be invested again).... I still have money in there from 4 years ago (Even after writing a Check this weekend for $50 Grand for a New Genesis G80). I have a higher withdrawal rate than average expenses, because I like selling more Stocks when the Market is high, and I don't plan on living forever. And I don't plan on leaving much for any heirs that I have (They don't need it)....

I understand and Respect what you are doing; But, it just was not what was being discussed here.