No. of Recommendations: 3
As much as I see SWR get pounded on these boards one has to know how much they can earn on the money they have at retirement before defining such a number. You could have a higher SWR if your money is earning 10% versus 3%.

No, you miss the point and it's an important one. SWR is a rate which is a worst case scenario over multiple years. So, over a 30 year period you WILL earn 10% at times, but you WILL also lose 10% SWR does NOT give you the maximum you can earn, rather it gives you what you can spend over say 30 years and be guaranteed, in the worst case scenarios over the life of the stock market, with various asset allocations specified, not to run out of funds.

In many, in fact most cases you will earn more. But in no case, during the time when you can no longer earn money, will you run out of funds before your plan does. At retirement, or early retirement, NOT running out of funds is VERY important.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.