8% Withdrawal rate via SWP !!! I think anything more than 5% can be too Risky. Very few Portfolios can sustain a 8% withdrawal rate for more than a decade and a half, as after that the capital will start getting spent at a very high rate. The standard thumb rule is to withdraw 4% or less every year. Alternatively, the withdrawal rate should be less than half of the average rate of return. If portfolio generates 10% on average, withdrawal rate should be less than 5%.
8% Withdrawal rate via SWP !!! I think anything more than 5% can be too Risky. Very few Portfolios can sustain a 8% withdrawal rate for more than a decade and a half, as after that the capital will start getting spent at a very high rate.
The standard thumb rule is to withdraw 4% or less every year.
Alternatively, the withdrawal rate should be less than half of the average rate of return. If portfolio generates 10% on average, withdrawal rate should be less than 5%.
Past record shows even 12% swp withdrawal did not wipe out the capital but rather increase for many funds!!
Tax efficiency depends on tax laws, so cannot be relied upon for year after year
Lol ...they are Vasily saying swp as equity gives fixed returns...what if bear market continues for 3 years ...this all just easy to say
more than SWP, SIP was discussed.