The problem is that’s not a sustainable withdrawal rate. Also it’s 10% average before factoring in inflation, so I’m real dollars it’s close to 7% on average, but some years are a negative return, where you’re eating into the principle, and require a portion of the up years to make up for those.
An indefinitely sustainable withdrawal rate is closer to 3.5%.
Also the federal poverty line is horrendously out of touch.
And that’s literally how retirement accounts work, so it’s not really that fucked up a concept
Sure, it wouldn’t be an easy live starting with $500k, but I think with strict budgeting and low costs you could stay in the black and grow your principle. And if you get any job at all on top of it, it’s even easier.
Anyway, yeah, was just spit balling how much a difference the money could make.
The problem is that’s not a sustainable withdrawal rate. Also it’s 10% average before factoring in inflation, so I’m real dollars it’s close to 7% on average, but some years are a negative return, where you’re eating into the principle, and require a portion of the up years to make up for those.
An indefinitely sustainable withdrawal rate is closer to 3.5%.
Also the federal poverty line is horrendously out of touch.
And that’s literally how retirement accounts work, so it’s not really that fucked up a concept
Sure, it wouldn’t be an easy live starting with $500k, but I think with strict budgeting and low costs you could stay in the black and grow your principle. And if you get any job at all on top of it, it’s even easier.
Anyway, yeah, was just spit balling how much a difference the money could make.