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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 75886  
Subject: Re: *Retirement Amt. Needed* Date: 1/6/2000 8:24 PM
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thegreatdane asks,

Does that 5% withdrawal, 20x expenses leave anything at the end of, say, forty years? I couldn't download the chart to run my own numbers.

Using the Retire Early Safe Withdrawal Calculator, 77% stock, and a 0.20% investment expense ratio I calculated that a 5% inflation adjusted withdrawal rate is 85% survivable. That means that in 15% of the 40 year pay out periods between 1871 and 1998 you would have run out of money in less than 40 years. There is a 50/50 chance that a retiree starting with $1 million and a 5% withdrawal would have at least $3.65 million at the end of 40 years. In the best 40 year period (the maximum Terminal value), you would have had more than $30 million in the account at the end of 40 years.

intercst
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