The study that the 4% rule is based on included the 70s. Everyone has different

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Jun 22, 2021
2:05:22pm

Pickett Contributor

The study that the 4% rule is based on included the 70s. Everyone has different

risk tolerance. If you aren't comfortable with someone else's roi and inflation assumptions, then that is fine, use your own assumptions that you are comfortable with and work longer.

To me, the risk of working years longer than I need to is much more unpalatable than the risk of having to make some lifestyle adjustments sometime in the future if my initial assumptions were too aggressive.

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Pickett

Bio page: Pickett
Joined: Apr 30, 2016
Last login: Feb 1, 2022
Total posts: 1,359 (0 FO)

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Messages

Author

Time

96k a year would work right now, but how many of you are factoring in inflation?

JohnnyComeLately Philosopher King

6/22/21 12:22pm

Retiring at 40 is a bad idea for a lot of reasons

Sea Chicken

6/22/21 12:26pm

Not a bad idea, need to save a lot less that way.

SJS

6/22/21 12:28pm

Exactly. I would go bored out of my mind.

6/22/21 12:30pm

If you have 2.4M at 40, might as well wait 10 years to retire.

chago04

6/22/21 12:30pm

I love hyperbole

Big Daddy D

6/22/21 12:30pm

True. The lesson for all retirees (regardless of age) is that you need to stay

garyfan

6/22/21 12:32pm

Hey now, hiking is meaningful. 🙂 but golf is trash

6/22/21 12:51pm

Nope. I’d be just fine. As the saying goes, “only boring people get bored”

Nikomedes

6/22/21 12:31pm

Retiring doesn't necessarily mean not working or staying active.

ReyOso

6/22/21 12:32pm

If I'm lucky enough to retire at 70, I plan to retire to bed.

Belboz

6/22/21 12:36pm

I retired before 40. Now 73. No bullet in head, yet.. Been great. 6 kids/1 wife.

grandpacoug

6/22/21 12:32pm

Boring people that need work to give them purpose.

Baron

6/22/21 12:50pm

I can’t sit around and do nothing. But if I had funding I could entertain myself

Powerbait DPM

6/22/21 2:32pm

It's working for me

ColoSpgs

6/22/21 12:34pm

So year 1? Did you miss the point of my post?

JohnnyComeLately

6/22/21 12:36pm

Yes, and No

ColoSpgs

6/22/21 2:15pm

You have to have passive income that is inflation adjusted, or a way to increase

Nat Gas Man

6/22/21 12:55pm

Yep I agree. There are ways to do that, Real Estate for one.

JohnnyComeLately

6/22/21 1:04pm

Real Estate is what I was thinking as well.

Eddie

6/22/21 1:12pm

The above is the easy answer...

grandpacoug

6/22/21 1:38pm

crazy to me people are still paying to store their stuff - read junk.

Mayor of Cougartown

6/22/21 1:54pm

I’ve been to two brand new storage facilities that are indoor and have AC. Both

Nat Gas Man

6/22/21 1:58pm

I sold mine. Cash cow with zero depreciation write off. Value in land.

grandpacoug

6/22/21 3:58pm

4% Rule (of thumb) takes into account inflation.

6/22/21 1:07pm

It does from non-fixed income sources

Nat Gas Man

6/22/21 1:14pm

The 4% rule accounts for inflation. The rule assumes you can get a return of

Pickett

6/22/21 1:14pm

I haven’t taken the time to run the scenarios with 6-10% inflation but I suspect

Nat Gas Man

6/22/21 1:27pm

Which is also not historically accurate. All you can is forecast based on historicals at this point. But

6/22/21 1:38pm

Having lived through the 70s I assume anything can and will happen

Nat Gas Man

6/22/21 1:43pm

The study that the 4% rule is based on included the 70s. Everyone has different

Pickett

6/22/21 2:05pm

I’ve actress that study. My only issue is what happens if there is a major stock

Nat Gas Man

6/22/21 2:40pm

You be flexible in the down years and cut back expenses, and in the years

Pickett

6/22/21 3:04pm

I don't know the exact figures ...

stirmac

6/23/21 6:28am

The first 5 years is absolutely crucial. Thus some will use the bucket strategy.

6/23/21 8:09am

I wouldn’t mind working behind Cabela’s gun counter in retirement.

DwigtA2RM

6/22/21 5:04pm

I have a buddy who worked early hours in his primary job and...

Eddie

6/23/21 8:16am

That would be a great retirement job

CBaass

6/23/21 9:28am

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