steadystate
Recycles dryer sheets
- Joined
- Feb 8, 2017
- Messages
- 75
The "safe withdrawal rate" is a key parameter in retirement. 3 or 4 percent is often cited as OK. A couple definition questions:
Is the WR a constant dollar value based on X% of the initial balance?
If so, should one inflation adjust the dollar number, so that in Y years, assuming inflation, you will be withdrawing more dollars than at the beginning?
Or is it a straight percentage of whatever the current balance happens to be?
Or is it something else?
Thanks in advance, Jeff
Is the WR a constant dollar value based on X% of the initial balance?
If so, should one inflation adjust the dollar number, so that in Y years, assuming inflation, you will be withdrawing more dollars than at the beginning?
Or is it a straight percentage of whatever the current balance happens to be?
Or is it something else?
Thanks in advance, Jeff