SWR milestone record
-
- Posts: 1298
- Joined: Sat Jun 29, 2013 3:06 pm
Re: SWR milestone record
A thought: with a sub 1% SWR you'd need to get used to the sensation of watching your portfolio fluctuate by a whole years expenses frequently.
Re: SWR milestone record
@Gilberto: yup, that's it. Now actually SWR stands for SAFE withdrawal rate, and of course a withdrawal rate of 30% is nowhere near "safe" (if you define "safe" as meaning that with this withdrawal rate you can live on your assets forever). So I would call it the WR, until it's below 4%, then I would start calling it the SWR
and @workathome: yeah, agreed. The stock market is pretty volatile, you would indeed see years of expenses evaporate (and then of course also come back...).
and @workathome: yeah, agreed. The stock market is pretty volatile, you would indeed see years of expenses evaporate (and then of course also come back...).
Re: SWR milestone record
Doing the calculation (and subtracting a 20% estimated tax liability from tax deferred retirement accounts), my SWR at my current level of spending is about 4.57%. However, my SWR based on what I would like my retirement spending level to be, is 6.86%. I think I've got a few more years of work ahead of me, although it is a great feeling knowing how close I am to the crossover point.
Re: SWR milestone record
i use this: http://www.mycalculators.com/ca/retcalc2m.html or this: http://www.dinkytown.com/java/Investmen ... ution.htmlGilberto de Piento wrote:Is there a formula for this? Here's what I came up with (I don't have a full year of expenses yet so I have to extrapolate average monthly expenses):
Average monthly expenses * 12 / FI Assets = SWR
My results:
$2322.89 * 12 / $90,768.30 = 30.7%
i'm not sure how people are putting up SWR rates over 6. you pretty much are never retiring if your SWR is greater than 6 and you're expecting to live longer than another 10 years.
Re: SWR milestone record
SWR probably isn't the right word. I would say some (myself included) posted what percent our present expenses are of our total assets, while still in the accumulation phase, rather than what rate we realistically expect to live off .leeholsen wrote:i'm not sure how people are putting up SWR rates over 6. you pretty much are never retiring if your SWR is greater than 6 and you're expecting to live longer than another 10 years.
Re: SWR milestone record
+1.slsdly wrote:SWR probably isn't the right word. I would say some (myself included) posted what percent our present expenses are of our total assets, while still in the accumulation phase, rather than what rate we realistically expect to live off .leeholsen wrote:i'm not sure how people are putting up SWR rates over 6. you pretty much are never retiring if your SWR is greater than 6 and you're expecting to live longer than another 10 years.
It's just a Withdrawal Rate (WR), rather than a SWR at that point. It's more of an Unsafe Withdrawal Rate (UWR).
But it's fun to look at what your WR would be at a given time, and see it edge closer to becoming a SWR.
Re: SWR milestone record
2006-negative wr (student debt)
2008 80% WR
2010 24% WR
2014 8% WR
projected
2018 4% SRW (I cannot wait!)
Edited to reach 4% SWR at 41 not 135 years old
2008 80% WR
2010 24% WR
2014 8% WR
projected
2018 4% SRW (I cannot wait!)
Edited to reach 4% SWR at 41 not 135 years old
Last edited by pka222 on Thu Jun 19, 2014 2:52 pm, edited 1 time in total.
Re: SWR milestone record
I think you're being a bit pessimistic here... You'll be over a hundred years old by that time!pka222 wrote: 2014 8% WR
projected
2108 4% SRW (I cannot wait!)
-
- Posts: 5406
- Joined: Wed Jul 28, 2010 3:28 am
- Location: Wettest corner of Orygun
Re: SWR milestone record
I thought it was optimism: being able to live and work when over 100 yrs old.
Re: SWR milestone record
Doh- that would be a stretch - just not the kind I am going forGeorge the original one wrote:I thought it was optimism: being able to live and work when over 100 yrs old.
Re: SWR milestone record
Two year update:
1995: No savings, no debt.
2001: Laid-off from work; decided I was FI with 5% WR.
2012: 2% WR
2014: 1.5% WR
The relentless rise in stock prices reminds me of the late 1990's. Whoo-hoo!
While the numbers have lost significance, it's fun to check every now and then.
1995: No savings, no debt.
2001: Laid-off from work; decided I was FI with 5% WR.
2012: 2% WR
2014: 1.5% WR
The relentless rise in stock prices reminds me of the late 1990's. Whoo-hoo!
While the numbers have lost significance, it's fun to check every now and then.
Re: SWR milestone record
3.5% as of this weekend. I am officially declaring myself FI.
Thanks to the people here (and at MMM too) for the inspiration.
Thanks to the people here (and at MMM too) for the inspiration.
-
- Posts: 284
- Joined: Tue Jul 09, 2013 1:47 am
Re: SWR milestone record
1.4% SWR as of Oct 30, 2014, twelve months into my early retirement. I'd just like to thank Ben Bernanke one more time for QE and all the goods times that followed.
1.75% as December 30, 2015.
1.75% as December 30, 2015.
Last edited by almostthere on Mon Jan 25, 2016 5:21 pm, edited 1 time in total.
Re: SWR milestone record
2000- ooooo money!
2004- K this house is ridiculously large and expensive and do I really need multiple new vehicles and a gated community?
2008- Can I get a do over, in a way that makes just a bit more sense?
2010- OK time to get serious Seriously...
2014- Finally!, Better late than never geez...
100% of all anticipated ERE expenses covered. Since my life will not look like it does now when I ERE, that is the basis for my interpretation of SWR.
This is difficult for me to quantify due to the high degree of adaptation and flexibility with which I live. I am not leveraged in any way. As of today based on what I actually would need I estimate it could fluctuate between 2.5 and 5.5 depending on market performance and what I wanted to do for the year in question.
Note: This also assumes I will never make or recieve another dime. Kinda doom and gloomish but there you have it.
2004- K this house is ridiculously large and expensive and do I really need multiple new vehicles and a gated community?
2008- Can I get a do over, in a way that makes just a bit more sense?
2010- OK time to get serious Seriously...
2014- Finally!, Better late than never geez...
100% of all anticipated ERE expenses covered. Since my life will not look like it does now when I ERE, that is the basis for my interpretation of SWR.
This is difficult for me to quantify due to the high degree of adaptation and flexibility with which I live. I am not leveraged in any way. As of today based on what I actually would need I estimate it could fluctuate between 2.5 and 5.5 depending on market performance and what I wanted to do for the year in question.
Note: This also assumes I will never make or recieve another dime. Kinda doom and gloomish but there you have it.
Re: SWR milestone record
Finally crossed the 4 % line - my SWR is now 3.99 %
Re: SWR milestone record
Congratulations, wizards! The last %s are the hardest, of course!
Retired for 2015
Thought I had posted this but was on my iPad so maybe that was the challenge.
In reconstructing this I'm pretty sure it goes like this:
2008 Bitter and sudden end of relationship: WR 12.5%
2010 Reset button on life now in place and going well: WR 10%
2012: WR 8%
2014: WR 4% - now able to call this a SWR!
1-Dec-2014: Handed in resignation
1-Jan-2015: Will be officially FI and able to devote more time to house projects, learning new skills, community service, friends and family.
Thanks to the community here - especially the dedication of Jacob in setting up this collaboration site - and also to the Mr. Money Mustache community. It has all be inspirational and educational.
In reconstructing this I'm pretty sure it goes like this:
2008 Bitter and sudden end of relationship: WR 12.5%
2010 Reset button on life now in place and going well: WR 10%
2012: WR 8%
2014: WR 4% - now able to call this a SWR!
1-Dec-2014: Handed in resignation
1-Jan-2015: Will be officially FI and able to devote more time to house projects, learning new skills, community service, friends and family.
Thanks to the community here - especially the dedication of Jacob in setting up this collaboration site - and also to the Mr. Money Mustache community. It has all be inspirational and educational.
Re: SWR milestone record
@PDXgal -- that's fantastic. Congrats!
Re: SWR milestone record
2011: 51% WR (graduated college, no income but very low spending living overseas)
2012: 43% WR (got a job, moved to high COL city)
2013: 29% WR
2014: 17% WR (surpassed 5 years of living expenses saved)
2015: 11% projected WR (new job, expecting to save of 75% net income)
I'm inspired by many posters' success stories and SWR's of well below 3%...
2012: 43% WR (got a job, moved to high COL city)
2013: 29% WR
2014: 17% WR (surpassed 5 years of living expenses saved)
2015: 11% projected WR (new job, expecting to save of 75% net income)
I'm inspired by many posters' success stories and SWR's of well below 3%...
Re: SWR milestone record
2011: infinite
2012: 76%
2013: 28%
2014: 12%
2015: 5% come hell or highwater!
2012: 76%
2013: 28%
2014: 12%
2015: 5% come hell or highwater!