3min chapter

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Episode 207: Freak Out With Math, Intermediate Term Portfolios, Annuities And Portfolio Reviews As Of September 23, 2022

Risk Parity Radio

CHAPTER

How to Get the Highest Perpetual Withdrawal Rate in a Portfolio

The key factor here is that you want to create a portfolio that generates, or can be withdrawn from, at a rate of zero point seven, five x dollars per month. So say we use the four % rule as a guide line as to how much that needs to be. And so 225 x is the amount that you need to accumulate to support this projected withdrawal. Now how long does it take to accumulate 200 a 25 x? Wel let's set the boundaries for that so you can understand how this works. One way of doing that would be simply not to invest the money at all, or put it in a saving account and just save it. At a rate of 25 x per year

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