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> In most cases there is a large margin of error built into the 4% "safe withdrawal rate" I don't think that's the case if you're retiring early. The 4% withd
by TheCoelacanth 6y ago
> In most cases there is a large margin of error built into the 4% "safe withdrawal rate"
I don't think that's the case if you're retiring early. The 4% withdrawal rate was based on a 30 year retirement. You need to go a bit lower if you want to have minimal risk of running out of money for a much longer horizon.
- neogodless 6y agohttps://engaging-data.com/will-money-last-retire-early/ https://engaging-data.com/will-money-last-retire-early/ You're more likely to die than run out of money!
- TheCoelacanth 6y agoCertainly, but with their example of retiring at 40, you have an 8.5% chance of going broke before you die and a 3.4% chance of going broke before you even reach a normal retirement age. That's a much higher level of risk than I would accept.