KLE 126: Looking For A Safe Withdrawal Rate
When you are working towards your Number, you have income to pay the bills, and have a little fun.
Then, you are presented with the challenge of using the rest to try and prepare for the future …
But, when you begin Life After Work (a.k.a. Retirement or reaching Your Number) you are suddenly stuck with the opposite problem: using your nest-egg to create some form of sustainable income (a.k.a. Safe Withdrawal Rate).
So, what is a Safe Withdrawal Rate?
It is how much (i.e. what %) of your portfolio can you spend each year to (a) make sure that you have enough to live off each week/month/year (allowing for inflation pushing up the price of everything that you buy over time) and (b) make sure that your money lasts as long as you do?
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In the next KLE, I will introduce you to an even better strategy!
