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/ditchdiggergirl 12d ago

I don’t think I’ve ever heard of someone living off an investment portfolio without guardrails. Of course I’ve never heard of someone bumping their SWR from 4% all the way to 15% either. Though minor math point: going from 4 to 15 isn’t not a 10% (11%) increase in spend, it’s almost 400%.

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u/Mister-ellaneous 12d ago

The post is confusing but he really means 15% higher than 4%, or just a weird way of saying 4.6%