[GNC] To whoever explained the 4% safe withdrawal rule - thank you

[Kalpesh Patel]

While I am not a financial professional, I would also think that the popular 4% withdrawal rule is not for everyone. 

Everyone should look at financial picture in totality as investments and social security (or pension) benefits are just a small piece of that pie as you need to consider your spouse, other income streams, health state and other factors. There are many moving parts to planning it in which a small error can cost dearly. 

-----Original Message-----
From: Bruce Griffis <bruce.griffis at gmail.com> 
Sent: Sunday, October 06, 2024 12:57 PM
To: gnucash-user at gnucash.org
Subject: [GNC] To whoever explained the 4% safe withdrawal rule - thank you

So I also misunderstood the 4% rule. I figured I would calculate it as I can take out 4% of my investments in 2024, then in 2025 take out 4% based on what I had in my portfolio as of 1/1/2025. And I misunderstood it. I recalculated based on 4% of what was in investments on the day I retired, then checked inflation rate (2.5% on August 2024 - I would need to check again at the end of the year) - and compared it to 4% of what I have in my portfolio today - and there was over a 2K difference in calculations. I could have taken out too much.

So, note to self. Each year check what was in investments on date of retirement. Check inflation rate. Recalculate safe withdrawal amount.

Now I need to go back and read up on what to do in years three, four, five, ... - I only know what to do in years one (4%) and two (4% plus annual inflation rate).

BruceG