just wondering how many do swr differently than 4%. my swr target is 1/2 of my yearly return. so if i want to spend $40k a year, i would need to make $80k a year.
using stock returns, i would need $1 million using the 4% rule
but for me, instead i assume that over time, i will get 6% (historic) growth each year so to get my $80k a year, i need almost $1.3 million for the same $40k which is my target number before retiring... sure i might hit fi before than but i dont know if i will be comfortable retiring until my own rule is met. well my goal is 1.5 but it will vary depending on what i get each year. just want my spend to be half of what i get. this way i can still have a 50% savings rate going forward in retirement as well
i heard real estate investors and dividend investors just spend the rent/dividends each month, but i dont know how that comes out as a swr number. i heard it is slightly higher than 4% but not sure since i dont do either if it isnt in the total stock index.
i am not anywhere close to it, just thinking about how people plan fire differently if they dont use 4% rule. i mean in reality, someone could be fi and spend 100% of returns, bit that would be foolish to me for long decades without more money going into system
mmm doesnt but it sounds like a lot on here are counting on that... which seems odd because people come to mmm because he fire, but he isnt following the 4% rule because he gets more than that as well. and i dont think he started fire with 4% rule but i dont know where his starting line was set
edit: not sure if it is in right forum now that i typed it out, please move to a better resting place if needed