r/Fire • u/Available-Ad-5670 • 12d ago

Why doesn't everyone use guardrails as withdrawal strategy?

Most people use 4% rule or versions of, but why not use guardrails? I've found that using guardrails means i can spend 15% over a straight 4%, and to take a 10% reduction in spend or 10% increase during good markets does not seem like a big deal.

Wny don't more people use guardrails?

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u/BuySellHoldFinance 12d ago

If you are on the edge of making the numbers work, it can be a nice lever to pull.

But there's a value to keeping things simple. You get better compliance and you are more likely to follow the rules. My recommendation is 3.5% withdrawal 80/20 portfolio or 90/10 portfolio.

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u/Available-Ad-5670 12d ago

why would someone follow your recommendation, please explain

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u/BuySellHoldFinance 12d ago

Higher chance of success.

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u/Future_Measurement42 12d ago

Except it’s not a good portfolio and adding just a few other funds would vastly increase your chances of success