What is the appropriate method to figure out your withdrawal rate?
Purely hypothetical, but lets say your account balance on January 1st is a $1,000,000. You spend $40,000 during the year. On December 31st your balance is $800,000.
Is your withdrawal rate considered 4% ( $40,000/ $1,000,000) ?or do you consider it to be 5% ( $40,000/$800,000)?
thx
Purely hypothetical, but lets say your account balance on January 1st is a $1,000,000. You spend $40,000 during the year. On December 31st your balance is $800,000.
Is your withdrawal rate considered 4% ( $40,000/ $1,000,000) ?or do you consider it to be 5% ( $40,000/$800,000)?
thx