Tag: safe withdrawal rate
Details of the 4% Safe Withdrawal Rate

Details of the 4% Safe Withdrawal Rate

Let's follow up on questions from last week: Explain again this 4% – is that 4% withdrawal from the “investment pot” each year in retirement? Wouldn’t that automatically reduce the amount withdrawn each year? And the 25 times living expenses…we might be unusual in that our children are both college age as we approach ...

READ MORE +
Back to the Trinity Study

Back to the Trinity Study

Today's post will be a sensuous reading experience that only a financial planner or an economist could love. If you're just getting started on your own finances then you probably want to skip this post (!) in favor of reading the “Armed Forces Guide to Personal Financial Planning”, or "The Military Advantage", or ...

READ MORE +
Retiring without a military pension

Retiring without a military pension

By now you've noticed a trend in the chapters from the "simplest" type of military early retirement (staying on active duty for at least 20 years) to the most difficult (separating as soon as your obligation ends). Financially, the best early retirement choice is staying on active duty until eligible to retire. ...

READ MORE +
Military retirement: how much can I really spend?

Military retirement: how much can I really spend?

The last post described the Trinity Study and explained the idea of a "safe withdrawal rate" to maximize the success of a retirement portfolio. A 4% SWR is a starting point, one put forward over a decade ago and appearing in print most frequently. It's straightforward, it has a high success rate, and it adjusts ...

READ MORE +
Military retirement spending: how much will I need?

Military retirement spending: how much will I need?

The short answer: your retirement savings portfolio needs to be about 25 times the size of your net annual retirement spending. If you want to spend $40,000/year in retirement and you don't have any pension or other income, then you're going to need a million bucks in the bank. If you have a military pension, ...

READ MORE +