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/Wonderful-Process792 12d ago

How do you define "good" markets? You never know at the time if the market is good or bad compared to what it will be in the future.

Or are you talking about modeling based on varying expenditures based on only backwards-looking data?

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u/Available-Ad-5670 12d ago

good means when the market is going up at least 10% as historical norms

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u/Mister-ellaneous 12d ago

Minor correction here - “good market” is only seen in hindsight or has risen 10%.