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Anyone from EY? Need referral.
Additional Posts in FIRE Financial Independence Retire Early
This market got me super down 😞
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They would sell enough to live on. If 4% withdrawal qualifies for 0% tax bracket even better
Sell
Ok thanks. Makes sense
Coach
FYI …. When this withdrawal strategy is most often mentioned you would increase the amount taken each year by the inflation % so that your spendable income is the same. Many current pendants say starting with a 3 or 3.5% amount is safer.
Coach
The S&P may increase 10% CAGR over long periods of time, but sequence of returns are really important and a 15-20% sell off (like the one we’re in right now) is particularly damaging in the first few years of drawdown.
Also not too many retirees who are 100% stock as it amplifies the above sequence of return risk. So even if it were, returns portfolio wide are going to be significantly lower than 10%.
Edit: S&P CAGR is really sensitive to where we are in the business cycle. It was close to 13% earlier this year. It was 8ish% if you looked in 2013/2014.