SWR milestone record

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workathome
Posts: 1298
Joined: Sat Jun 29, 2013 3:06 pm

Re: SWR milestone record

Post by workathome »

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.

DutchGirl
Posts: 1646
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: SWR milestone record

Post by DutchGirl »

@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...).

chicago81
Posts: 307
Joined: Sat Feb 04, 2012 3:24 pm
Location: Chicago, IL

Re: SWR milestone record

Post by chicago81 »

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.

leeholsen
Posts: 325
Joined: Tue Apr 16, 2013 6:38 pm

Re: SWR milestone record

Post by leeholsen »

Gilberto 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 use this: http://www.mycalculators.com/ca/retcalc2m.html or this: http://www.dinkytown.com/java/Investmen ... ution.html

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.

slsdly
Posts: 380
Joined: Thu Mar 14, 2013 1:04 am

Re: SWR milestone record

Post by slsdly »

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.
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 :).

arebelspy
Posts: 61
Joined: Sat Jul 09, 2011 5:50 am

Re: SWR milestone record

Post by arebelspy »

slsdly wrote:
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.
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 :).
+1.

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.

pka222
Posts: 81
Joined: Sat Nov 27, 2010 1:09 am

Re: SWR milestone record

Post by pka222 »

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
Last edited by pka222 on Thu Jun 19, 2014 2:52 pm, edited 1 time in total.

DutchGirl
Posts: 1646
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: SWR milestone record

Post by DutchGirl »

pka222 wrote: 2014 8% WR
projected
2108 4% SRW (I cannot wait!)
I think you're being a bit pessimistic here... You'll be over a hundred years old by that time!

:lol:

George the original one
Posts: 5404
Joined: Wed Jul 28, 2010 3:28 am
Location: Wettest corner of Orygun

Re: SWR milestone record

Post by George the original one »

I thought it was optimism: being able to live and work when over 100 yrs old.

pka222
Posts: 81
Joined: Sat Nov 27, 2010 1:09 am

Re: SWR milestone record

Post by pka222 »

George the original one wrote:I thought it was optimism: being able to live and work when over 100 yrs old.
Doh- that would be a stretch - just not the kind I am going for

bibacula
Posts: 148
Joined: Fri Apr 20, 2012 4:56 am

Re: SWR milestone record

Post by bibacula »

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. :)

BPA
Posts: 150
Joined: Fri Jun 24, 2011 5:02 pm

Re: SWR milestone record

Post by BPA »

3.5% as of this weekend. I am officially declaring myself FI. :D

Thanks to the people here (and at MMM too) for the inspiration.

almostthere
Posts: 284
Joined: Tue Jul 09, 2013 1:47 am

Re: SWR milestone record

Post by almostthere »

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.
Last edited by almostthere on Mon Jan 25, 2016 5:21 pm, edited 1 time in total.

WYOGO
Posts: 31
Joined: Sun Nov 23, 2014 4:23 pm
Location: Northern Wyoming

Re: SWR milestone record

Post by WYOGO »

2000- ooooo money! :mrgreen:
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.

wizards
Posts: 122
Joined: Sun Mar 31, 2013 8:24 pm
Location: Denmark

Re: SWR milestone record

Post by wizards »

Finally crossed the 4 % line - my SWR is now 3.99 % :)

DutchGirl
Posts: 1646
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: SWR milestone record

Post by DutchGirl »

Congratulations, wizards! The last %s are the hardest, of course!

PDXgal
Posts: 5
Joined: Wed Oct 15, 2014 4:54 pm

Retired for 2015

Post by PDXgal »

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.

Tyler9000
Posts: 1758
Joined: Fri Jun 01, 2012 11:45 pm

Re: SWR milestone record

Post by Tyler9000 »

@PDXgal -- that's fantastic. Congrats!

nacho
Posts: 8
Joined: Fri Apr 11, 2014 3:27 pm

Re: SWR milestone record

Post by nacho »

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%...

JL13
Posts: 645
Joined: Sat May 17, 2014 7:47 am

Re: SWR milestone record

Post by JL13 »

2011: infinite
2012: 76%
2013: 28%
2014: 12%

2015: 5% come hell or highwater!

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