No. of Recommendations: 6
<<Finally, let me further rain on the parade by reminding you that, thanks to the slowly increasing effect of populist-leftist politics in this country, your taxes are only going to go up. I think that early retirees will be a particularly juicy target for the class-warfare attack being perfected by Clinton/Gore/Gephart-type politicians. You can bet that at the very least these guys are drooling over the trillions of dollars in retirement accounts and are losing sleep try to scheme ways to get at it. I suspect that they will eventually figure out a way to tax at least some of it. So, I would count on an increasing tax burden which will take more and more of your 4% yearly draw or whatever amount you plan to withdraw each year. Social Security? I wouldn't plan on seeing much of it come your way if you can afford to live without it.

My hope is that taking Social Security benefits away from people who don't need them will stabilize the failing Social Security system and do away with the need for further tax increases of the kind you describe. Of course, there's always the Medicare system which is in lots worse shape --- so I wouldn't be too surprised if you are proved right.

As to the basic premise of your post --- that the 4% safe withdrawal level isn't sustainable -- I have my own unproven systems that I am happy with. I plan to continue to pick some of the low hanging fruit by continueing my repair service indefinitely, but my aim is going to be to keep that work load down to what I'm really happy doing.

That leaves me the freedom to reevaluate what I'm doing and make changes that seem to be indicated for many years to come. That flexibility gives me confidence in looking at the future without being dependent on anyone's theories ---not even my own.

Seattle Pioneer
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