4 ms·
Adding to what everyone else is saying, remember that $80k/year will be great for now, but if you're not letting the principal grow at all, you'll still only be
by throway8675309 9y ago
Adding to what everyone else is saying, remember that $80k/year will be great for now, but if you're not letting the principal grow at all, you'll still only be getting $80k/year in 40 years, at which point it'll be a lot less useful
- gallerdude 9y agoYeah, I’ve considered this. Maybe in years where return exceeds 4%, you invest the excess.
- TwiztidK 9y agoI'm going to assume you mean 'in years when 4% exceeds $80k, leave the excess invested'. As the whole point of using 4% as a safe withdrawal rate is that it allows the good years to balance out the bad years.
- ta99229977 9y agoI don't think you fully understand what the 2.2 million represents at 80k/year. This is a 3.6% SWR, which is considered "safe" because over a long period of time, the stock market will typically do well enough to offset any downturns. The average market return from 1985 - present is about 7%, so i have no idea why you would assume principal remains the same after 40 years.