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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!
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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?
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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%.Originally posted by Smilinggirl View Post“Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”Comment
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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
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I’d also highly recommend joining early-retirement.org. Great forum for those aiming for early retirement (or normal retirement for that matter).Originally posted by Smilinggirl View PostSteve
* 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
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I looked this up and it seems interesting. Thank you!Originally posted by disneysteve View PostComment
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