Hi,
I would like to understand how shall we adjust safe withdrawal rate (SWR of recommended 4%) as per real interest rate (ROI minus inflation).
Why I ask this:
I am from India. For last 25 years, India has seen average inflation of 8% per year.
Inflation of next few years may not be very different.
I would like to understand whether the 4% SWR has to be adjusted downwards in order to meet high inflation numbers ?
If yes, then do we have any guideline ?
Thanks, Ravi