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There are investments that return 10+%, but that doesn't mean that's how much you should take out every year. The 3-4% (usually 4% for retirement savings) is to
by yibg 7y ago
There are investments that return 10+%, but that doesn't mean that's how much you should take out every year. The 3-4% (usually 4% for retirement savings) is to buffer for years where you get negative returns. I've never seen anyone recommend withdrawing 12% a year with plans to have the nestegg last a long time.
- tempsy 7y agoI was suggesting 6% not 12%. You can live off $60K as a single person even in higher cost cities pretty easily. Taxes aren’t actually that high even in CA at that level.