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Conservatively, a portfolio can produce 3% over inflation forever. So you need to start with 33x your desired annual spending. Aggressively is 5%, which means
by HockeyPlayer 14y ago
Conservatively, a portfolio can produce 3% over inflation forever. So you need to start with 33x your desired annual spending. Aggressively is 5%, which means you need 20x your spending.
- nileshtrivedi 14y agoThis is an overestimate because you don't need perpetual income. You only need income till your death. So for the case when portfolio return is 3% higher than inflation, 21x of your spending is fine (assuming 30 years of life after retirement).