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Old 12-29-2015, 10:35 AM
 
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How much is enough? A lot of people knock it as too simplistic but I think the 4% rule (or 5%) is very good.
determine how much you need per month and deduct any income you have for certain such as pension and social security
if you need more money than from the certain sources, divide that amount needed by .0033 (or to be less conservative .0041) and that is how much principal you need to invest
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Old 12-30-2015, 11:52 AM
 
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it is a lot more complex then that .

that 4 or 5% draw only refers to the income side of things and its success rate of lasting . . it makes no assumption about money left for heirs , big medical expenses , emergency spending that exceeds budget and all those home repairs and eventual renovations that cost amounts that drive the yearly budget out of bounds .

a well designed plan does not rule these things out but plans and allows for them . things are far more complex in the real world then take 4% , inflation adjust and have a nice life .

Last edited by mathjak107; 12-30-2015 at 12:01 PM..
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Old 12-30-2015, 03:30 PM
 
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Quote:
Originally Posted by mathjak107 View Post
it is a lot more complex then that .

that 4 or 5% draw only refers to the income side of things and its success rate of lasting . . it makes no assumption about money left for heirs , big medical expenses , emergency spending that exceeds budget and all those home repairs and eventual renovations that cost amounts that drive the yearly budget out of bounds .

a well designed plan does not rule these things out but plans and allows for them . things are far more complex in the real world then take 4% , inflation adjust and have a nice life .
It will be interesting how folks react with a few flat years of returns along with a bear market. Perhaps recent returns have altered realistic planning.
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Old 12-30-2015, 03:37 PM
 
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well as i always say unconventional times are going to call for unconventional investing methods
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Old 12-30-2015, 03:42 PM
 
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Originally Posted by mathjak107 View Post
well as i always say unconventional times are going to call for unconventional investing methods
And most importantly spending decisions.
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Old 01-05-2016, 07:18 PM
 
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Anyone belong to AAII--

This was on email today
Don't know if it will post if you aren't a member

AAII: The American Association of Individual Investors
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