The 4% Rule and the Dot-Com Bubble Burst

The sequence of the returns matter, these two are what happened in reality. Instead of just withdrawing 4% of the portfolio value every year, we said we're going to actually set a base limit of $40,000. This one, they lived like kings, meaning that instead of 40,000, they actually had average withdrawals of $72,000 a year. Plus their ending portfolio value is close to $1.6 million. So make sure, and this is something I always tell people when you're talking about sequence of return risk. Sometimes we're in the middle of a volatile period. Last year, 2022 was not a good investment year. We've had volatility this year.