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Personal Finance (Not Investing) • How much money do I need?

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Basic needs are met at 10k/month or 120k/year. I would like to spend another 10k/month for travel, gift, etc. that I can cut in bad economic conditions.

I remember reading about the value of flexibility in retirement. That is, I can have a very high withdrawal rate as long as I am willing to cut my spending by some (in my case 50%) if the size of the portfolio is below some number.

Let's round it up and say $250k with the possibility of cutting spending to $125k.

I am planning for a 50 year retirement. Chances are I will expire way before that but wife is younger and children can have what is not spent. So, yes, for planning, let's use 50 years.

How much money do I need to have in my portfolio to be able to withdraw $250k/year but can easily cut spending to $125k in case market goes south (think extended period of COVID or the financial crisis). The variable withdrawal strategy in the wiki starts at about 4.5% withdrawal rate, so $5.5m?

Thank you!

Statistics: Posted by Workqa — Mon Apr 08, 2024 4:28 pm — Replies 0 — Views 53



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