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So therefore you've been working with a 2.5% pre-capital gains tax 2.5% withdrawal rate?

There must really be some difficult decisions when you get closer to ER.

You might reach a point where you have a basic standard of living at 4% withdrawal rate.

Do you quit there?

Do you continue to build-up to achieve a lower withdrawal rate to "feel" safer?

Do you aim to achieve a larger retirement income, but keeping the 4% withdrawal rate?

I think trying to achieve both a level above basic living standard and lower than a 4% withdrawal rate is a luxury few can hope to reach.

Your thoughts?


During retirement I'm using 4.5% for inflation and 7% for return on investments (about 70% stocks, 30% bonds).

I had been using those figures except 8% for return......I thought I was being really conservative until 2000! <g>
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