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RustedSoul ansered the following statement..

<<"Just recently I set up to receive $1100/per mon to be transfered
from the IRAs to our Joint Acct to give us cash to do "things".>>


>>For a portfolio of 200K, this amounts to a 6.6%
>>withdrawal rate. If you continue to withdrawal at
>>this rate, you might outlive the portfolio. To get
>>an idea of what you need to consider to determine
>>optimal withdrawal rate read:
>>http://www.geocities.com/WallStreet/8257/restud1.html

The rule of thumb of 5% is conservative when the withdrawal rate is being incremented yearly by the CPI and 6.6% withdrawal rate that is incremented by inflation may be problem if the funds do not increase faster than 6.6%.

Since this is more or less 'mad' money, it could be re-invested or used for vacation. Nothing says that it has to be indexed with inflation. It does not appear to be necessary for living expenses and is used for extra so I think this is less risky than implied.

BGP

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