No. of Recommendations: 1
When you look at these studies, the real killer is not the percentage that you take out, but adjusting for inflation.

I retired 1 year ago and ended up taking out 5.6% my 1st year. I do not plan to ever adjust for inflation. My mortgage accounts for close to 50% of my expense and is therefore not subject to inflation. When it is paid out in 10 years, I plan to reduce my withdrawals, if necessary. I ran Monte Carlo simulations and I should be fine with these 3 rules I set up for myself.

I will take out the same amount from my portfolio each year that I took out my 1st year.
1. If that amount is less than 3.5% of my total portfolio, I will give myself a 10% raise.
2. If the value of my portfolio has decreased from the previous year, I will still take out the same amount as long as it represents between 5.3% and 6% of my total portfolio.
3. If my normal withdrawal represents more than 6% of my total portfolio, I will cut my withdrawal amount by 6% plus put another 2% into a rainy day fund for emergencies.

I've gone a lot more conservative in my investments the last 5 years, but still have easily beat the S&P 500 YTD, 1 yr, 3 yrs, 5 yrs and 10 yrs.

I have a built in raise when my mortgage is paid off and am perfectly willing to eat more hamburger and less steak and decrease my discretionary spending in tough times.

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