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.grif...@gmail.com> Sent: Sunday, October 06, 2024 12:57 PM To: gnucash-user@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 _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
