Friday, November 4, 2016

Calculating Required Retirement Savings Rates: Part 5

In Part 1 of this series on calcluating required retirement savings rates, I stated this assumption:
  • The remainder of your retirement living expenses will be covered by annual, inflation-adjusted withdrawals of 4% of your retirement savings.
In this post I'll explain what this means, evaluate whether or not this assumption is reasonable, and discuss a few different ways to think about this.