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"So I take my savings. And I figure out how much money I need to generate, order to live at the forecasted lifestyle."

Not meaning to be presumptuous, but all this sounds to me like somebody that is cutting it too close to the edge, and leaving themselves no margin of safety.

Sadly, our local Walmarts have a waiting list of people applying for a Greeter job, who retired with an inadequate margin of safety.

Yes, I know, none of this gets around to answering your original question.

Unless you have a generous safety margin, all it takes is for one of your holdings to blow up like WPPPS, or GM bonds, or Lehman, or AIG to put you in a world of hurt.

The well-researched studies show that the maximum safe withdrawal rate is about 4%. You are proposing a withdrawal rate that is much higher.
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