pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
.... So now I'm 65, seems like I can live my life just fine on 3% WR, how exposed do I need to be? My answer: not very. In fact when I do the various calculators, and pencil in different AAs, there is not much difference in success rates between a 20% exposure to equities, and a 60%. So why be more exposed than I need to be?
If you have heirs or charities that you want to donate gobs of money to, then this may be why.
60% equities:
FIRECalc looked at the 118 possible 30 year periods in the available data, starting with a portfolio of $1,000,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 118 cycles. The lowest and highest portfolio balance at the end of your retirement was $561,030 to $5,524,427, with an average at the end of $2,133,336. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 30 years. FIRECalc found that 0 cycles failed, for a success rate of 100.0%.
20% equities:
FIRECalc looked at the 118 possible 30 year periods in the available data, starting with a portfolio of $1,000,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 118 cycles. The lowest and highest portfolio balance at the end of your retirement was $159,379 to $3,751,776, with an average at the end of $993,320. (Note: this is looking at all the possible periods; values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 30 years. FIRECalc found that 0 cycles failed, for a success rate of 100.0%.