Two Sides of FI How Much Can You Really Spend in Retirement?
Jun 29, 2025
Dive into the world of retirement finances with engaging insights on safe withdrawal rates. Discover how the CAPE-based withdrawal strategy can outperform traditional methods. Learn the importance of budgeting, asset allocation, and creating a structured cash flow model. Explore the interplay between spending habits, taxes, and income sources that can affect your financial strategy. Plus, uncover practical tips for enhancing your financial tools in Google Sheets, ensuring you stay on track for a secure and enjoyable retirement!
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Start With SWR Toolbox
- Use Karsten's safe withdrawal rate toolbox to set your monthly spending budget.
- Begin with the parameters and main results tab, inputting your portfolio and goals.
Update Key Inputs Monthly
- Update portfolio value and start date monthly in the Cashflow Assist tab.
- Set inflation and social security assumptions carefully to reflect your situation.
CAPE Withdrawal Rate Dynamics
- The target withdrawal rate from the CAPE model is a monthly, dynamic figure.
- It's usually higher than the fixed safe withdrawal rate because it adjusts to current valuations.