3 ms·
I’m not sure I understand. Is it really true that you can’t extract 4% cash money per year off of a million dollars, even in a down market, without shrinking th
by sillysaurusx 5y ago
I’m not sure I understand. Is it really true that you can’t extract 4% cash money per year off of a million dollars, even in a down market, without shrinking the principal?
$100k should be enough to live comfortably off of in the Midwest.
- ZephyrBlu 5y agoI'm confused by your question. If you take 4% of the principal and the market does not return at least 4%, your principle has shrunk. This does not account for inflation either. The Trinity study that the 4% rule comes from is based on having some assets left after 30 years, not the original principle being intact. Trinity study: https://en.wikipedia.org/wiki/Trinity_study https://en.wikipedia.org/wiki/Trinity_study