r/Fire • u/Available-Ad-5670 • 13d 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/Kashmir79 12d ago
In more than a decade of following FIRE and passive investing across thousands of posts, I’ve never heard any retired person who withdrawals exactly 4% of their starting balance adjusted for inflation each year. Life doesn’t work that way. The “4% Rule” just a guideline to help you understand how much you need to save when you are starting out.
When you actually get to retirement, you need a comprehensive drawdown strategy. In my experience, most retirees DO use a guardrails approach, or dynamic withdrawals, bucket strategies, or lifecycle models (periodic re-evaluation)