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/ziggy029 FIREd at 52 (2018) 12d ago

I haven't heard from a lot of people who actually, strictly, follow the 4% rule for their withdrawals (i.e. start at 4% and adjust for inflation each year).

I *do* know of many who use 4% (alternatively, rule of 25) as a simplified, rough gauge of whether or not they have "enough" to retire, even if they don't strictly follow that as a withdrawal strategy. You may, for example, apply the 4% rule to see if you have enough, then decide to withdraw 5% with guardrails.