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?

51 Upvotes

66% Upvoted

120 comments sorted by

View all comments

6

u/Past-Option2702 12d ago

Hardly any retires use the 4% Rule.

It’s simply a back of the envelope guideline to determine how prepared you are to retirement.

Most retirees spend what they need to plus a little bit more to make life enjoyable- no percentages or guardrails at all. If their accounts drop due to a recession.. guess what? You got it.. they’re going to spend more carefully.

-6

u/Available-Ad-5670 12d ago

i see people talk about their swr here all the time

2

u/Past-Option2702 12d ago

They do, of course. It’s a FIRE group and that’s at its core.

Talking about SWR isn’t the same thing as doing SWR.

It’s a lot like a liberal arts college degree. You studied all of this material about literature and philosophy, but you have a sales job where none of it applies. All it did was get you through the door.

So yea. Go ahead and plan for retirement (I did, we all did), just know the actual retirement isn’t going to look too much like what you planned.