Announcement

Collapse
No announcement yet.

4% rule for 20 years

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    4% rule for 20 years

    Hi all. This is probably simple for some of you, but I'd like to know how to use the 4% rule for retirement anticipating 20 years rather than 30. I've got income covered until the age of 70, but I'd like to plan to age 90. I'm not sure how to do the math. Can someone help please? Thank you!

    #2
    I think 4% is probably overly conservative if you only need your money to last 20 years. I'd suggest using one of the many good calculators and playing with the inputs to see where you end up for a safe withdrawal rate. Firecalc.com is a very good place to start.

    Keep in mind that if you aren't going to touch your portfolio until you're 70, it's going to continue growing until then so your starting point at 70 will be a lot higher than it is today.
    Steve

    * Despite the high cost of living, it remains very popular.
    * Why should I pay for my daughter's education when she already knows everything?
    * There are no shortcuts to anywhere worth going.

    Comment


      #3
      Originally posted by Smilinggirl View Post
      Hi all. This is probably simple for some of you, but I'd like to know how to use the 4% rule for retirement anticipating 20 years rather than 30. I've got income covered until the age of 70, but I'd like to plan to age 90. I'm not sure how to do the math. Can someone help please? Thank you!
      Firecalc is a solid resource. There is an investigate tab where you can set a target percentage for success and it will provide a safe withdrawal rate. Based on 100% success target for a 20 year time period, the safe withdrawal rate is 4.42%.
      Money is better than poverty, if only for financial reasons

      Comment


        #4
        I've looked at Firecalc before, but forgot the name. As I lean more and more into wanting to retire early and travel, this will be helpful. Thank you!

        Comment


          #5
          Originally posted by Smilinggirl View Post
          I've looked at Firecalc before, but forgot the name. As I lean more and more into wanting to retire early and travel, this will be helpful. Thank you!
          I’d also highly recommend joining early-retirement.org. Great forum for those aiming for early retirement (or normal retirement for that matter).
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

          Comment


            #6
            Originally posted by disneysteve View Post

            I’d also highly recommend joining early-retirement.org. Great forum for those aiming for early retirement (or normal retirement for that matter).
            I looked this up and it seems interesting. Thank you!

            Comment

            Working...
            X