Whats the safe withdrawal rate in retirement?
) You need to think about how much risk you are willing to take. (See, “The Retire Early Study on Safe Withdrawal Rates.”) The higher the risk, the greater the chance you’ll suffer an involutary return to the work force. Run some scenarios for yourself using the Retire Early Safe Withdrawal Calculator. This Excel spreadsheet uses 127 years of stock market data (1871-1998) to illustrate the range of returns for various pay out periods. The results are shown in Table 1., below.
