alt Hacker NewsThat's because the withdrawals are 4%. If you have $3M, maybe lower the withdrawals to 1.25%. That would be the same as 4% of $1M.
That's because the withdrawals are 4%. If you have $3M, maybe lower the withdrawals to 1.25%. That would be the same as 4% of $1M.
I don't think that's accurate.
If I withdraw 4% of a $1M portfolio, I only have $960K left to compound.
If I withdraw 4% of a $3M portfolio, I should have $2.88M left to compound.
If the question is "Will your money last?" I would not expect the simulation results to be identical.
Edit: I failed here. Downvotes are right. I simulated it myself and saw the results. Leaving this comment here so others can learn from my mistake.