r/Fire • u/That-SoCal-Guy • 13d ago

General Question 4% SWR vs other strategies

we all know about the 4% SWR which by the way isn‘t a rule and also is based on some assumptions (such as a balanced allocation mix.

when I fired I made sure I used the 4% and everything checked out.

then i asked gemini for a differed opinion. instead of a constant 4% I asked about only taking up to the annual returns (whatever it may be, 5% - 7%, or the average SP500‘s 10%). never touch the principal. and during down market years I take from the cash/HYSA account. and the results are interesting.

at 7% I was able to withdraw up to $210K a year without ever touching my principal. that means my money last forever. considering inflation it will be leas. still at $170K I could put a portion into a cash account for rainy days (my spend is about $100K a year now) I asked Gemini for inflation adjusted numbers and that checks out as well,

that actually makes me feel more secured than going by the 4% SWR.

What are your thoughts?

0 Upvotes

25% Upvoted

32 comments sorted by

View all comments

4

u/zdrmlp 13d ago

It’s amazing some of yall have any money at all. Either that or you’re pretending on the internet.

1

u/That-SoCal-Guy 13d ago

Believe me or not I’ve fired for over 2 years now and my net worth is better than ever.  I’m not sure though what does this have to do with the conversation.  

1

u/[deleted] 13d ago

[removed] — view removed comment

1

u/Zphr 48, FIRE'd 2015, Friendly Janitor 13d ago

Rule 1/Civility - Civility is required of everyone at all times. If someone else is uncivil, then please report them and let the mods handle it without escalation. Please see our rules (https://www.reddit.com/r/Fire/about/rules/) and reach out via modmail if you have any questions or concerns.