mickeyd
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Another article indicating that 4% SWR may be too risky for some retirees.
4% FailureThese data might also suggest that the couple should adopt a more conservative portfolio and a lower withdrawal rate (3.75% instead of 4.75%). For example, perhaps they feel that the odds they will run out of money must be kept below 5.00%. In which case, they would adopt an 80%/20% stock/bond mix and an annual dollar withdrawal rate (increased each month by inflation) of $41,920 on their initial $1 million investment. But that conclusion is excessively conservative. Because once they have embarked on their journey of withdrawals during retirement, if they fall too far behind, encountering a rare market crisis (of which there is less than a 5% chance), then they can easily adjust their annual consumption level down.