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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 75384  
Subject: Re: Question For Intercst...or anyone Date: 2/14/2013 3:10 PM
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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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