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Arcachon
26-08-18, 08:30
If your initial year annual expenses requirement is $24,000/yr then you will need $24,000/0.05 = $480,000.


http://investmentmoats.com/stock-market-commentary/portfolio-management/shift-dividend-stock-portfolio-more-conservative-increase-passivity/

Kyith
26-08-18, 10:07
hi Arcachon, thanks.

Your need is a function of the initial rate that you withdraw, in this case 5% and your annual expenses.

If you wish to be conservative, it can be lower at 3.5%. Thus if you need 24000, its 24000/0.035 = $685,700.

5% is rather risk seeking.

Arcachon
26-08-18, 11:14
hi Arcachon, thanks.

Your need is a function of the initial rate that you withdraw, in this case 5% and your annual expenses.

If you wish to be conservative, it can be lower at 3.5%. Thus if you need 24000, its 24000/0.035 = $685,700.

5% is rather risk seeking.

PM