4 ms·
If you look at safe withdrawal rates that do not result in portfolio depletion, 4% is about the most you could hope for from a fairly stock-heavy portfolio, and
by CompelTechnic 8y ago
If you look at safe withdrawal rates that do not result in portfolio depletion, 4% is about the most you could hope for from a fairly stock-heavy portfolio, and this is a rate really intended for funding a 30-year retirement, not indefinite. 3% is more realistic for a permanent withdrawal.
10% is absurd.
- usaar333 8y agoIt matters how you are defining rate. The 4% rule is using a withdraw amount fixed to an initial start time, only increasing with inflation. If your withdraw in a given year is percentage of current portfolio size, you can tolerate a higher percentage.