Nice! What would your SWR be if you included your wife's savings?
SWR milestone record
Re: SWR milestone record
Re: SWR milestone record
right around the 3.0% I believe.
Edit: I suppose I ought to clarify what I'm actually counting as well: my numbers exclude the condo (because it's not an investment property) and the expenses continue to include the mortgage payment. If I netted out the outstanding mortgage and the total investments and decreased the spending by the P+I, my 6/2018 WR would be about 3.2%. So, a couple of backstops/rounding conservative numbers involved.
Edit: I suppose I ought to clarify what I'm actually counting as well: my numbers exclude the condo (because it's not an investment property) and the expenses continue to include the mortgage payment. If I netted out the outstanding mortgage and the total investments and decreased the spending by the P+I, my 6/2018 WR would be about 3.2%. So, a couple of backstops/rounding conservative numbers involved.
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Re: SWR milestone record
1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
2/1/2019 - 3.88%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
2/1/2019 - 3.88%
Re: SWR milestone record
My SWR dropped from 4.89% to 3.46% today (*).
* darn you Google Finance and your lying flakiness ... it's still fun to look at those numbers.
* darn you Google Finance and your lying flakiness ... it's still fun to look at those numbers.
Re: SWR milestone record
month 23 was 2/1/2019
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Re: SWR milestone record
1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
3/1/2019 - 3.63
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
3/1/2019 - 3.63
Re: SWR milestone record
1/1/13 - 12.29%
1/1/14 - 12.57%
1/1/15 - 8.53%
1/1/16 - 8.67%
1/1/17 - 19.07%
1/1/18 - 8.75%
1/1/19 - 7.46%
1/1/20 - 9.17%
1/1/21 - 7.25%
1/1/14 - 12.57%
1/1/15 - 8.53%
1/1/16 - 8.67%
1/1/17 - 19.07%
1/1/18 - 8.75%
1/1/19 - 7.46%
1/1/20 - 9.17%
1/1/21 - 7.25%
Last edited by Kipling on Thu Feb 04, 2021 11:08 am, edited 1 time in total.
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Re: SWR milestone record
Current = 1.846%
Would have to look into past data (hard to do while traveling) and see when it exactly went below 3%...but approximately more than 6 yrs ago.
Would have to look into past data (hard to do while traveling) and see when it exactly went below 3%...but approximately more than 6 yrs ago.
Re: SWR milestone record
Impressive! Other than JLF I don't know of anyone lower.
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Re: SWR milestone record
Thanks. I didn't know it was a competition
Actually today I calculated my SWR after a long time..partly because for past few days I've been on Tamiflu and hence more on the forum.
I mostly keep a close eye on my $ burn rate, especially long term (multi year) burn rate and periodically check in on portfolio performance.
Actually today I calculated my SWR after a long time..partly because for past few days I've been on Tamiflu and hence more on the forum.
I mostly keep a close eye on my $ burn rate, especially long term (multi year) burn rate and periodically check in on portfolio performance.
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Re: SWR milestone record
1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
4/1/2019 - 3.62%
Progress sure does seem to slow down a bit once you get below 4%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
4/1/2019 - 3.62%
Progress sure does seem to slow down a bit once you get below 4%
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Re: SWR milestone record
It's because the WR's show a 1/x relation to x which tends to be rather linear during the accumulation phase because it's dominated by earned income. The second column shows log2(100*) which inverts it. I suppose, I could also just have plotted 1/WR. That's of course just another way of saying that 2% is twice as much money as 4% which is twice as much as 8% and so on.2Birds1Stone wrote: ↑Tue Apr 09, 2019 12:36 pm1/1/2011 - 120% ~ 6.91
1/1/2012 - 80.0% ~ 6.32
1/1/2013 - 58.5% ~ 5.87
1/1/2014 - 36.7% ~ 5.20
1/1/2015 - 20.7% ~ 4.37
1/1/2016 - 14.4% ~ 3.85
1/1/2017 - 8.8% ~ 3.14
1/1/2018 - 6.4% ~ 2.68
1/1/2019 - 4.2% ~ 2.07
4/1/2019 - 3.62% ~ 1.86
PS: Insofar this will become a foundation of various plots, I propose using log3(%) because 3% is the historically perpetual SWR. My agenda here would be to get away from the @#$@ 4% rule. If that metric is preferred, then log4(%) is better.
Re: SWR milestone record
7%, woop woop
Re: SWR milestone record
General question: When calculating the SWR, do you consider your total NW (including value of house, and maybe other things like gold, ... ) or do you exclude the value of such things, which doesn't produce any income?
Re: SWR milestone record
Would including your house not be double counting its value? Its already sort of included by reducing your expenses. Say you have €100k house and €100k portfolio, and you spend €8k pa. If you include your house, your SWR is 4%, but your portfolio needs to grow by 8% pa to support this spending level since you can't exactly sell a bit of house each year.
Unless it's a rental property or you have a lodger.
I would still include it in calculating NW though.
Unless it's a rental property or you have a lodger.
I would still include it in calculating NW though.
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Re: SWR milestone record
I would only count the portion of home equity above and beyond the price of a dwelling I would be willing to downsize to.
Ex: You own a $100k home, and owe $25k on it. You could/would downsize to a $50k home as part of your draw-down strategy. I would count the $25k* equity I would have left over.
*I understand that in reality you would lose $$ on transaction costs during the sale and purchase of both properties, so this math is not exact. But it gets the point I'm trying to make.
Bankai makes a good point as well. If you plan on selling that home and renting, now your expenses increase by the cost of rent, minus the carrying costs of a home outside of the mortgage.
Ex: You own a $100k home, and owe $25k on it. You could/would downsize to a $50k home as part of your draw-down strategy. I would count the $25k* equity I would have left over.
*I understand that in reality you would lose $$ on transaction costs during the sale and purchase of both properties, so this math is not exact. But it gets the point I'm trying to make.
Bankai makes a good point as well. If you plan on selling that home and renting, now your expenses increase by the cost of rent, minus the carrying costs of a home outside of the mortgage.
Re: SWR milestone record
@Bankai, 2B1S: Yes and Yes. Both of your answers make totally sense. Thanks for your feedback. I haven't reported my SWR with my home equity and I won't.
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Re: SWR milestone record
I have a hard time with this thread because I keep changing the rules on myself.
Back in 2016 I reported 3.94%. In early 2019 that same calculation is 3.41%. Those numbers are computed as if all expenses were to be met from the stash. When I subtract off what outside income sources will take care of the number is 0.78% assuming I live to age 80.
I've also given myself a raise (for planning purposes anyway) since I'm leery of how things will go with medical costs and other things. At the higher spending rate the standalone number is 4.3% and the net-of-income number is 1.5%
Back in 2016 I reported 3.94%. In early 2019 that same calculation is 3.41%. Those numbers are computed as if all expenses were to be met from the stash. When I subtract off what outside income sources will take care of the number is 0.78% assuming I live to age 80.
I've also given myself a raise (for planning purposes anyway) since I'm leery of how things will go with medical costs and other things. At the higher spending rate the standalone number is 4.3% and the net-of-income number is 1.5%
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Re: SWR milestone record
@jacob, I understand the concept and appreciate you laying it out like that.
1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
5/1/2019 - 3.57
1/1/2011 - 120%
1/1/2012 - 80.0%
1/1/2013 - 58.5%
1/1/2014 - 36.7%
1/1/2015 - 20.7%
1/1/2016 - 14.4%
1/1/2017 - 8.8%
1/1/2018 - 6.4%
1/1/2019 - 4.2%
5/1/2019 - 3.57