UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: loringf Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76421  
Subject: Annual Percent Withdrawals Date: 8/2/1999 4:31 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
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.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.