β
In summary: Withdrawing 3% or less annually is as near a sure bet as anything in this life can be. Stray much further out than 7% and your future will include dining on dog food. Stocks are critical to a portfolioβs survival rate. If you absolutely, positively want a sure thing and your yearly inflation raises, keep your withdrawal rate under 4%. And hold 75% stocks/25% bonds. Give up those yearly inflation raises and you can push up towards 6% with a 50% stock/50% bond mix. In fact, the authors of the study suggest you can withdraw up to 7% as long as you remain alert and flexible. That is, if the market takes a huge dive, cut back on your withdrawals and spending until it
β
β
J.L. Collins (The Simple Path to Wealth: Your road map to financial independence and a rich, free life)