If you want to read about withdraw rate, a place to start is:...what level of risk you are willing [to] assume...we decided that 3.8% was our withdraw rate.It's a big balancing act. If you want to have a 100% guarantee, you have to pick a very low SWR. Problem is, if the world doesn't come crashing down during your lifetime, what you've done is lived a miserly retirement and left a very large estate to your heirs.If you want to live a more-than-bottom-line lifestyle you have to use a higher rate, but with the risk that your portfolio will be depleted before you die.What to do, what to do?Another good place to start is reading on the Guyton/Klinger strategy:http://schulmerichandassoc.homestead.com/Using_Decision_Rule...In particular note these items:"When the Modified Withdrawal Rule is applied to the above case with an initial withdrawal rate of 5 percent (my emphasis), the success rate improves to 100 percent.""By applying [these three] decision rules, retirees can, on average, withdraw nearly $26,000 more a year, double their total withdrawals, and still achieve a 99 percent success rate.""[If the market crashes] retirees may intuitively think that, if the need arises, they can act and modify their withdrawals to rescue their portfolios. Now their actions can be made explicit in the form of [these] decision rules"
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