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by timerol
1276 days ago
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That is not accurate. The 4% withdrawal rate is based on the Trinity Study[1], which showed that it was unlikely to exhaust retirement funds over a 30 year retirement. It already includes compounding and draw down calculations. There's a whole active debate around exactly what numbers are sufficiently safe over what time horizons and what portfolio mixes. For a fun long read, see ERN's series on safe withdrawal rates https://earlyretirementnow.com/safe-withdrawal-rate-series/ [1]: https://en.wikipedia.org/wiki/Trinity_study |
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