Re:America’s Professional Elite: Wealthy, Successful and Mis...
by Raidion on Thursday February 21, 2019 @05:11PM
(#19221010)
The Trinity study said a conservative number was 4%. Since then a lot of people said "Well, I don't want a conservative number, I want a number that has no chance of failure", so went to 3.5% or 3%. Practically I don't think that's a wise choice, a vast majority of the time most of the time, any failures comes from sequence of returns risk and the remaining percent coming from simulated bad returns coupled with a very long life.
This means that as long as you're willing to cut back on expenses if the market dips soon after you retire, 4% is fine, and it's probably not worth the extra X years of your life to try to get that number lower.
This means that as long as you're willing to cut back on expenses if the market dips soon after you retire, 4% is fine, and it's probably not worth the extra X years of your life to try to get that number lower.