[alex_sikora]

I'd probably recommend https://old.reddit.com/r/FatFIRE over /r/pf as it's more likely to have people that have experienced getting a large lump sum like this.

[monktastic1]

FatFIRE is for people who want to live large off their savings (usually understood as >$100k/yr passive income, which generally requires $2.5M+ in invested assets). That doesn't seem to describe OP's position. If FIRE is an interest, then https://www.reddit.com/r/financialindependence/ is a better bet.

[Justin_K]

4% roi is far worse than market and real estate averages.

[icedchai]

4% is what FIRE folks consider "safe" over long periods of time. It is based on the well-known Trinity study: https://en.wikipedia.org/wiki/Trinity_study

[Justin_K]

...but it's still worse than market averages.

[voisin]

I think it is 4% nominal, which leaves some excess returns to keep pace with inflation.

[doingmyting]

Yes, that's why it's considered the worst case and a safe bet to withdraw

[rabidrat]

Not anymore.

[Justin_K]

Based upon what?

[dmoy]

It's not 4% ROI, it's 4% withdrawal rate. And even that is not super safe if you're retiring for many decades (the RE part).

You can use a variety of online calculators to back test a 4% withdrawal rate - maybe 80% safe, but 20% of the time you'll go broke before dying.

[IvoCass]

Why isn't it safe? Or where can I read more on that?

[koolba]

I really appreciate linking directly to old reddit rather than the crap default.