What is a safe perpetual withdraw rate?

[tmm99]

Agree. I am mostly in Canadian Banks, Telcos, Pipelines, and Utilities. Current yield about 3.75%.

Me too - Canadian banks, telecomm., pipelines, and miscellaneous. (Like I said, I don't have much in the Canadian market, but as a US citizen living in Canada, holding Canadian ETF's/mutual funds in non-registered accounts was not on the table, so I tried to diversify on my own...) I believe my yield is a little over 4%.

 

[nun]

If you put the money in the bank and know how long you'll live it's easy to calculate a SWR. If you risk money in the stock market and don't know when you'll die you have to use longevity and historical stock market statistics to come up with a probable SWR.

I don't like either of those and so my WR is currently about -2% as I reinvest all dividends.

 

[Fermion]

I would have preferred to win the recent powerball but I forgot to buy a ticket. My SWR would have been something like -99%

 

[Corporateburnout]

I would have preferred to win the recent powerball but I forgot to buy a ticket. My SWR would have been something like -99%

Good one

 

[kcowan]

Agree. I am mostly in Canadian Banks, Telcos, Pipelines, and Utilities. Current yield about 3.75%.

Yes but total return has been over well over 10% for many.

Several even in USD:
Total growth comparisons

 

[Doc0]

I'll take any powerball win

Best

 

[Danmar]

Yes but total return has been over well over 10% for many.

Several even in USD:
Total growth comparisons

Absolutely. Most are around 14-16% GAGR total return last 5 years. That's why I have decided to start liquidating small amounts of stock in addition to the divs.

 

[pb4uski]

Best definition of perpetual yet.

Only problem is that you end up working longer than necessary that if you rely on total return.... probably a lot longer.

 

[jazz4cash]

That's what Vanguard does with their Managed Payout Fund, they try and do a 4% pay but adjust every year with the last 3 years.

Wow. They KNOW what the last three years are? They're good! Seriously how does that work. Is it a target date fund?

 

[alaska55]

Wow. They KNOW what the last three years are? They're good! Seriously how does that work. Is it a target date fund?

No it's a managed payout fund VPGDX http://obliviousinvestor.com/a-look-at-vanguards-managed-payout-fund/

The strategy of the Vanguard Managed Payout Fund sits between these two — with a level of spending that does vary based on portfolio performance, but that is “smoothed” by basing the withdrawal on the average share price over multiple years. (Specifically, the fund sets a monthly distribution in January of each year, based on 4% of the fund’s average share price over the last three years.)