undefined | Better HN

0 pointsbachmeier1y ago0 comments

> Unfortunately any thread on this is drowned out by uninformed people

That's a fairly aggressive statement for someone that doesn't know what the 4% rule is. It's definitely not this

> The 4% rule suggests selling 4% of your principal per year.

https://www.investopedia.com/terms/f/four-percent-rule.asp

0 comments

1 comments · 1 top-level

So if you withdraw 4% in year 1, and your underlying equities are flat for 10 years because the market moves sideways, as it did in 2000 to 2010, what percentage are you withdrawing in year 10? It's more than 4%

That just makes my example above even worse for a retiree.

Is it true or not that you can secure well above 4% in year 1 YoC in a relatively low-risk manner in today's market, and also secure it against inflation?

Yes, this is true.

So either you disagree with this premise and can back it up with a meaningful counterpoint, or you can agree and move on.

j / k navigate · click thread line to collapse