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I finally downloaded the spreadsheet provided in the recent F4 retirement series (thanks Ann) and was surprised to find out I would run out of money if I pulled out 8% a year (S&P returns scenario).

Then I realized the spreadsheet was designed to pull out a percent of the *original* amount, not of the "current" balance. After I changed the formulae to the latter, 8% kept me safe and happy.

Now, the caveat and the question: I am hoping to live on approximately 8% of the balance each year and supplement when necessary (i.e., when returns are down) with outside work/income. Is anyone else using this strategy, and how does it work for you?

I'm 38 and hope to start substantially equal withdrawals when my balance is around $500k (about 5-7 years from now), thereby providing for about $40k a year to start.
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