bigla
Recycles dryer sheets
I thought I knew how to handle the 4% SWR but after reading a few threads and many posts I am confused. I am math dumb so please bear with me.
Here's my hypothetical example. I start retirement with a 60/40 portfolio worth 800k. My first year's withdrawal is 32k.
In year 2, say the portfolio is worth 840k. Do I:
a) take out 4% of 840k, or
b) 32k plus adjusted for inflation.
Now I believe the answer is b) so now my question is:
In year 2, if the CPI is 2.5%, do I take 2.5% of the 32k, or 800K or 840K?
Thank you in advnace for your help.
Larry
Here's my hypothetical example. I start retirement with a 60/40 portfolio worth 800k. My first year's withdrawal is 32k.
In year 2, say the portfolio is worth 840k. Do I:
a) take out 4% of 840k, or
b) 32k plus adjusted for inflation.
Now I believe the answer is b) so now my question is:
In year 2, if the CPI is 2.5%, do I take 2.5% of the 32k, or 800K or 840K?
Thank you in advnace for your help.
Larry