This is because I speak in hypotheticals since this is the theory forum. Personally I plan to be in the underspend club, so my personal chance of running out will be low. A lot could happen in the future though so I am doing a bit of harmless speculation.Gavinsiu, I don't see the answer to my two questions. I'm asking about the specific plan of Gavinsiu.
My first question is what is the plan of Gavinsiu? I want to understand why that plan might let the retiree run out of money before death.
My second question is why was that plan chosen by Gavinsiu? I want to understand why a plan which doesn't let the retiree run out of money while still alive, even when living to a very old age or when markets severely misbehave, wasn't chosen instead.
Going back to the hypothetical gavinsiu who did not want to over save and use a 80% success. How would you recognize you are on the path to failure?
The second question is psychological. At what point do you start freaking out from the loss regardless if you will ultimately run out of money.
Remember the 4% rule is only meant to last 30 years with the idea that you don’t run out of money in year 30. Near the end if there is a risk you will outlive your money would you for example set up an annuity to ensure that does not happen?
Statistics: Posted by gavinsiu — Fri Jun 07, 2024 5:08 pm