buck-the-trend-and-retire-early: Personal Finance News from Yahoo! Finance
"Buck the trend and retire early".
The post has standard advice and recommends no more than 3% SWR. It was one of the posters that got my attention, recommending the following formula:
"Take your age at retirement and subtract it from 105.
Divide the value of your financial holdings by that number.
You now have the amount of annual withdrawl you can make. You will also have a cushion of extra money for an unexpected event or age related increase in expenditures."
Is this realistic or too conservative. With a stash of 3 million at say age 47 I could only take out about $52,000 per year. This is much less than $90,000 which is a 3% SWR. Thoughts?
"Buck the trend and retire early".
The post has standard advice and recommends no more than 3% SWR. It was one of the posters that got my attention, recommending the following formula:
"Take your age at retirement and subtract it from 105.
Divide the value of your financial holdings by that number.
You now have the amount of annual withdrawl you can make. You will also have a cushion of extra money for an unexpected event or age related increase in expenditures."
Is this realistic or too conservative. With a stash of 3 million at say age 47 I could only take out about $52,000 per year. This is much less than $90,000 which is a 3% SWR. Thoughts?