What's your SWR and why?

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22

Ok I agree to not buy “Bio” as it’s not necessarily healthier, but saying to buy cheaper is not a good suggestion.
Buy smart by buying healthy quality/price food. It’s not worth to retire few years earlier and at the expense of your health.

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24

This is also my reasoning… by adding too many safety nets (belt & braces) I’ll end up retiring at normal retirement age… if I manage to reach it ! :joy:

I prefer to take some calculated risks but risk aversion (or lack thereof) is a very personal factor

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25

Vanguard has published a research paper on SWR last year. It’s linked from this blog post: Fueling the FIRE movement: Updating the 4% rule for early retirees | Vanguard

It’s US-centric but compares US-only with global investment strategies. Their SWR conclusion is the following:

  • 2.6% for US-only investments with 1.0% fee
  • 2.8% for global investments with 1.0% fee
  • 3.3% for global investments with 0.2% fee
  • 4.0% for global investments with 0.2% fee and dynamic spending (adjust spending based on market performance)

Assumptions:

  • 50% stocks / 50% bonds
  • Global investment portfolio: 30% US stocks, 20% ex-US stocks, 35% US bonds, 15% ex-US bonds (no mention of hedging)
  • 50 year retirement horizon
  • Future returns based on Vanguard Capital Markets Model (VCMM) forecasts
  • No taxes or social security
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