"Since the withdrawals increase (or decrease) with your year-end portfolio balance, it's very likely that they'll grow over time."


That's what I thought when I retired in January 2000. Figured in a couple years I'd be banking the extra from my SEPP. We all know what happened to the market in 2000, 2001 and 2002. Based on 12/31/02 IRA balance my 2003 withdrawal covered only 2/3 on my expenses. Good thing I had substantial investments in taxable account to make up the difference. Good news is this year's withdrawal is my last required under SEPP and will cover over 80% of expenses.

Moral of the story: Have a BIG safety net if you RE.