The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing


Subject:  Re: 30-Year Retirment at 4.5% Withdrawal Rate Date:  5/14/2007  11:53 AM
Author:  aj485 Number:  57419 of 90540

I think this is the key. The title of the thread is "30-year retirement at 4.5% withdrawal rate", but then the examples don't reflect what that strategy means.

No, the examples exactly reflect the title. The title does not say "4.5% Safe Withdrawal Rate" - the title says "4.5% Withdrawal Rate".

So, for any newbies who might be getting bogged down in the fighting, let's recap:

The 4% (or 4.5%, whatever) safe withdrawal rate means you withdraw 4% of your beginning portfolio in year one.

In year two, you withdraw 4% of that BEGINNING portfolio value from year one, adjusted upward for inflation.

It DOES NOT MEAN you withdraw 4% of your portfolio value each year.

Yes, this is the Safe Withdrawal Rate strategy, not the strategy portrayed in this thread.

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us