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General Discussion / 3.3% SFR then 5% after 5 yrs?
« on: September 22, 2018, 07:17:37 AM »
So I obviously know there are a ton of variables but the previous GCC post has me wondering what the math would say if you underspent for 5 years then what SWR could you realistically spend assuming all other variables were constant. Assuming average rates of return ect.
I understand his argument that he feels he can reset his withdrawal rate to 4% of his new total and agree he can do that because he has income and can decrease spending dramatically. I also agree that even without the income he could probably do that because he?s past the critical point of time. That?s what I understood from the article although I read it pretty quickly and may have missed another point so feel free to correct me.
My concern is that FIRE calculator says I could end up with 25M(under the best circumstances in history ) when I die at a 4% SWR?that would be dumb! Id rather spend more at some point. How do u know. Is there a too big to fail point? Not that I really know what we would spend that much more on but we could donate.
I understand his argument that he feels he can reset his withdrawal rate to 4% of his new total and agree he can do that because he has income and can decrease spending dramatically. I also agree that even without the income he could probably do that because he?s past the critical point of time. That?s what I understood from the article although I read it pretty quickly and may have missed another point so feel free to correct me.
My concern is that FIRE calculator says I could end up with 25M(under the best circumstances in history ) when I die at a 4% SWR?that would be dumb! Id rather spend more at some point. How do u know. Is there a too big to fail point? Not that I really know what we would spend that much more on but we could donate.