No. of Recommendations: 1
What if our S&P 500 retiree retired on January 1, 2000 and commenced taking distributions at a 4% rate?

Then she has about $407,000 in the portfolio and is taking out $53,600 this year (13.2%). With 20 years to go ?????


"guardrails"
I like the idea behind some of G/K's rules and work, however, I find a little disturbing that using some of their rules you can't tell the retiree upfront what the "minimum" really is. Thus for risk adverse folks (and those with withdrawal amounts very near their LWYM expenses) selectively chosing the rules is as important as selecting the limit parameters.

I favor a "progressive" rule but not just based on the increased portfolio amount but would include re-evaluating the retiree longevity among other changes.
Print the post  

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement