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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79815  
Subject: Re: Question about safe withdrawal rates Date: 11/16/2013 9:34 PM
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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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