Originally Posted by PimTac
4% is the number that is generally accepted by many professionals and investors. One way to verify your drawdown is to run a good Monte Carlo simulation. There are good MC calculators on the web.
Don't trust the number, verify it.
I read a white paper that suggests 2.8% in this low interest rate environment for a 90% chance of not running out of money. I like the idea of having some "guaranteed income" during retirement at least to cover living expenses. The rest put into whatever investment vehicle you like. I'm also a fan of having at least 1-2 years savings so that I don't have to pull out funds during a correction which can really wipe out your retirement.
4% is the number that is generally accepted by many professionals and investors. One way to verify your drawdown is to run a good Monte Carlo simulation. There are good MC calculators on the web.
Don't trust the number, verify it.
I read a white paper that suggests 2.8% in this low interest rate environment for a 90% chance of not running out of money. I like the idea of having some "guaranteed income" during retirement at least to cover living expenses. The rest put into whatever investment vehicle you like. I'm also a fan of having at least 1-2 years savings so that I don't have to pull out funds during a correction which can really wipe out your retirement.