No. of Recommendations: 2
DolonAltekar asks,

I'm relatively young, at 50 years old, but I've been lucky enough over my life to almost be at the point where I can claim financial independence.

What happens, if instead of 3-4% you manage to make say, 8-10% over a long period of time. Do you stick with the same rate, or is is safe to increase your amount. How do you make this determination?

Over the past 5 years, I've made more like 19% annualized. I don't expect that to continue forever, of course, but it does seem to change the retirement picture quite a bit.

Any wisdom would be appreciated.


I retired in 1994 age age 38 after a 17-year career as an engineer in the oil & gas industry. Once my savings reached the point that a 4% withdrawal was enough to fund my lifestyle, I didn't have a good reason to continue showing up in the office so I quit.

I wouldn't have a problem following the PayOut Period Reset Method detailed in this article.

Here's a look at how several retirement portfolios have performed under the burden of a 4% withdrawal. Even if you retired at the worst time in the past 30 years (i.e., the year 2000), it turned out just fine as long as you were reasonably diversified.

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