View Single Post
Old 11-27-2020, 7:35pm   #14
DAB
Sparkles Flambeaux
Barn Stall Owner #4
Barn Raising I,II
NCM Supporter '13,'14,'15,'16,'17,'21
Bantayan Kids '13,'14,'15,'17
Points: 172,014, Level: 100
Activity: 9.0%
 
DAB's Avatar
 
Join Date: Jan 2011
Location: Santa Fe, NM
Posts: 61,462
Thanks: 11,772
Thanked 33,021 Times in 14,161 Posts
Gameroom Barn Bucks: $17500122
Default

Quote:
Originally Posted by Jeff '79 View Post
If you withdrew 4% per annum, the principal would last 26 years, not 30 years.
Are you assuming a 3% return, per annum, on the remaining principal?
That would seem to get you to 30 years.
the study done long ago used historical data, ups and downs, covering 30 year time periods from 1929 (i think) to the 90s or so. even with down cycles, the ups made up for the downs on average.

so, yeah, we all want 10-12% per year (that's what Dave Ramsey assumes ), but i'm ok with reducing risk and being happy with 6%.

if you do it right, you get to a certain point where you can stop taking so many risks. risks have ups, and large downs too.

i think i figured some time ago that if we averaged 6% long term, we'd end up with more than we started with and live nicely too.
DAB is offline   Reply With Quote
The Following User Says Thank You to DAB For This Useful Post: