I’d like to start a topic on your SWR and the thinking behind it. I’ve seen everything from 2.5%-4% on this forum.
SWR and why
I’ve set my SWR to 3.25% based on some articles I read, mainly on this one:
The Ultimate Guide to Safe Withdrawal Rates – Part 3: Equity Valuation – Early Retirement Now
I’m slightly worried about sequence risk if the market crashes / drops heavily in the first years of retirement. If I continue to draw out my SWR even then I might destroy to much of my wealth longterm. In this case I’d cut down on my spending.
What’s the goal
Goal: never run out of money until my death, wealth can be 0 by then. No plan on having any income apart from the generated one from my NW.
How many years must it last
About 50 years based on current life expectancy.