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!
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