ResNullius writes,Thanks to all. I don't know exactly what I'm thinking about here, but I figured if a 4% withdrawal rate adjusted yearly for inflation had a very high survival rate over 30 to 40 years, then a 4% withdrawal rate without annual inflation adjustments would have to be as good as gold so to speak. Anyway, thanks. I misunderstood what you were asking. I thought you meant take 4% of your year end balance each year (e.g., if you start with $1 million and your portfolio drops 20%, you'd take 4% of $800,000 or $32,000 the next year. if it increased by 20% to $1.2 million, you'd withdraw $48,000.)You seem to be saying "Take $40,000/yr. from a $1 million starting balance forever." Absolutely that's much safer. If inflation is 3% per year, in about 23 years you'll be effectively taking only $20,000/year from the portfolio in real terms.intercst
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