What Is A Safe Withdrawal Rate For Early Retirement?

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Safe withdrawal rate is one of the fundamentals of Financial Independence and Retire Early (FIRE). Learn more about safe withdrawal rate for early retirement.

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Safe Withdrawal Rate means having enough money to live a comfortable life while still having enough for the rest of your life.

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The 4% SWR aims to enable you to withdraw 4% from your portfolio every year while still sustaining yourself.

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Many people say that the economy will be different in the upcoming decades; the 4% rule will not hold up. While there are no guarantees based on historical returns.

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When you retire in your 30s or 40s, you hopefully need your retirement amounts for longer than the 30 years.

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According to Bengen, your portfolio should consist of 50-60% stocks and 40-50% bonds if your retirement horizon is 30 years.

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When determining your Safe Withdrawal Rate, definitely take into account your time horizon, asset allocation, and recent market developments.

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FOR MORE ABOUT THIS POST, VISIT RADICAL FIRE

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