SWR milestone record

Ask your investment, budget, and other money related questions here
ertyu
Posts: 2913
Joined: Sun Nov 13, 2016 2:31 am

Re: SWR milestone record

Post by ertyu »

Went to look at job ads for my home town; a casino dealer's starting salary would represent a 4.46% withdrawal rate on my current savings.

User avatar
unemployable
Posts: 1007
Joined: Mon Jan 08, 2018 11:36 am
Location: Homeless

Re: SWR milestone record

Post by unemployable »

I drew down $2119 in "principal" in 2022. This is to say, proceeds from selling assets that were used to pay expenses rather than be redeployed into other assets. It does not include dividend or rental income, nor does it include income that was reinvested into the same security (in my case, bond interest and dividends in retirement accounts).

So that's a "drawdown rate" of 0.3%.

I think a true "withdrawal rate" should include investment income not reinvested. Adding that back in I get about 1.6%. Adding back rental income (sublet, so not really an investment) gets me to about 2.1%. Maybe I'll do the math to the exact dollar if I'm bored.

One 2023 financial goal is to get that drawdown rate, the 0.3 figure, to zero.

DutchGirl
Posts: 1653
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: SWR milestone record

Post by DutchGirl »

ertyu wrote:
Mon Jan 02, 2023 7:34 pm
Went to look at job ads for my home town; a casino dealer's starting salary would represent a 4.46% withdrawal rate on my current savings.
You mean you could DealerFIRE?

:lol:

WFJ
Posts: 416
Joined: Sat Apr 24, 2021 11:32 am

Re: SWR milestone record

Post by WFJ »

WFJ wrote:
Tue May 18, 2021 1:18 pm
Rough estimates below and biased to the high side.

6/1/2016 2.5%
1/1/2018 1.5%
1/1/2019 2.5%
1/1/2020 1.0%
1/1/2021 0.8%
1/1/2022 0.6%
1/31/2023 0.75% (investments down 6% expenses up, mostly rent)

User avatar
Viktor K
Posts: 364
Joined: Sat Jul 30, 2016 9:45 pm

Re: SWR milestone record

Post by Viktor K »

1/1/2021 - 301.7%
6/6/2021 - 128.7%
1/5/2022 - 42.8%
6/1/2022 - 27.9%
1/1/2023 - 20.5%

User avatar
Lemur
Posts: 1619
Joined: Sun Jun 12, 2016 1:40 am
Location: USA

Re: SWR milestone record

Post by Lemur »

Lemur wrote:
Thu Aug 06, 2020 4:04 am
12/01/2018 - 32.97% [$30,000 / $91,000]
04/30/2019 - 20.34% [$24,000 / $118,000]
05/22/2019 - 17.78% [$24,000 / $135,000]
11/12/2019 - 16.90% [$24,000 / $142,000]
04/30/2020 - 15.21% [$24,000 / $157,800]
08/06/2020 - 12.44% [$24,000 / $193,000]
12/02/2020 - 7.19% [$24,000 / $333,900]
01/01/2021 - 6.81% [$24,000 / $352,200]
07/03/2021 - 4.96% [$24,000 / $484,000]
02/04/2023 - 4.84% [$28,000 / $578,000]
Estimated Annualized Spending / Total Market Value of Investments.

Notes - I used my actual January 2023 spending and annualized it and rounded up to the nearest ten thousand for the 02/04/2023 estimate. Previous estimated spending were just ballpark estimates of where I hoped we'd be at. But reality is different. But good news is, not too far off from actual spending. Considering the inflation hasn't impacted us that much.

Think I'll update in 6 months and see where we're at.

benrickert
Posts: 41
Joined: Sat Apr 25, 2020 11:34 am
Location: Oslo

Re: SWR milestone record

Post by benrickert »

End 2018: 69%
End 2019: 31%
End 2020: 30%
End 2021: 18%
End 2022: 10%

Trajectory too comfortable. Progress mainly from higher income leading to higher savings rate, leading to increased capital base. Although salary increase from main job is nice as long as it doesn't come with increased slavery and golden handcuffs, focus should be on reducing base spend (housing, food, transportation) and acquiring ERE skills to set up more alternative income streams and being able to fix and make things myself.

DutchGirl
Posts: 1653
Joined: Tue Sep 06, 2011 1:49 pm
Location: The Netherlands

Re: SWR milestone record

Post by DutchGirl »

benrickert wrote:
Wed Apr 12, 2023 3:23 am
Trajectory too comfortable. Progress mainly from higher income leading to higher savings rate, leading to increased capital base. Although salary increase from main job is nice as long as (...), focus should be on reducing base spend (housing, food, transportation) and acquiring ERE skills
At least you'll have a lot of money, and thus a lot of time and options, to teach yourself more ERE skills? Getting out of golden handcuffs like Houdini might be the first skill you'll need to learn, with this career trajectory.

Well done on the progress!

AlpineTR
Posts: 21
Joined: Wed Mar 22, 2023 7:53 pm

Re: SWR milestone record

Post by AlpineTR »

I'm still new around the forum, but I've been reading the blog since 2009. I thought I'd share my SWR, which I've been tracking since 2015.

2015 11.8%
2016 7.9%
2017 6.7%
2018 6.8%
2019 6.1%
2020 4.8%
2021 3.8%
2022 3.3%
2023 3.6%

The finance geek in me enjoys the convexity of the chart. The concave blips (2017 and 2022) correspond with significant life events. Had I avoided lifestyle inflation, my current SWR would be 2.0%. Goes to show what kids can do.

Image

IlliniDave
Posts: 3867
Joined: Wed Apr 02, 2014 7:46 pm

Re: SWR milestone record

Post by IlliniDave »

Maybe this is not what is intended but my actual withdrawal rates have been

2021 (5 months) 0.00%
2022 0.00%
2023 (first 7 months) 0.00%

Historical accumulation era data

2013 7.53%
2014 10.08%
2015 5.64%
2016 4.80%
2017 4.33%
2018 4.21%
2019 4.41%
2020 3.55%
2021 2.50% (first 7 months)

Those numbers are based on actual spending during the year compared to stash balance during the same year. I never really reported them in this thread because my situation isn't straightforward due to having an annuity which would cover a substantial portion of my monthly expenses once retired (so far it's covered about 125%-130% of my actual spending while retired). I had estimates of what my retirement-long average withdrawal rate might be, and what I recall is that it was down to about 0.6% on the cusp of plug pulling (figured somewhat conservatively) assuming I lived to about 85.

frugaldoc
Posts: 89
Joined: Fri Jun 30, 2023 1:31 am
Location: Sasebo, Japan

Re: SWR milestone record

Post by frugaldoc »

2023: 8.1% (almost a Dave Ramsey approved withdrawal rate) :lol:

User avatar
grundomatic
Posts: 421
Joined: Thu Apr 29, 2021 9:04 am

Re: SWR milestone record

Post by grundomatic »

end 2014 ~0 savings
end 2020 12.1%
end 2021 10.4%
end 2022 6.4%
end 2023 5.6%

recal
Posts: 80
Joined: Sun Nov 14, 2021 12:29 pm

Re: SWR milestone record

Post by recal »

recal wrote:
Fri Sep 09, 2022 8:12 am
06/2018 -- 300%
09/2022 -- 9.09%
01/2024 -- 7.34%

okumurahata
Posts: 162
Joined: Sat Jul 01, 2023 5:26 am
Location: 127.0.0.1

Re: SWR milestone record

Post by okumurahata »

End of:

2016 269%
2017 360%
2018 244%
2019 175%
2020 118%
2021 95%
2022 49%
2023 24%

2Birds1Stone
Posts: 1605
Joined: Thu Nov 19, 2015 11:20 am
Location: Earth

Re: SWR milestone record

Post by 2Birds1Stone »

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%
1/1/2020 - 3.2%
1/1/2021 - 1.3%
1/1/2022 - 2.6%
1/1/2023 - 2.3%
1/1/2024 - 1.6%

It's been a couple of years since I've updated this as I don't really track individual SWR after getting married.....

As a household we are somewhere around a 2-2.5% SWR these days.

xmj
Posts: 121
Joined: Tue Apr 14, 2020 6:26 am

Re: SWR milestone record

Post by xmj »

Getting closer...

Date SWR
2017-12 36.00%
2018-12 38.00%
2019-12 34.00%
2020-12 17.00%
2021-12 13.18%
2022-06 13.84%
2022-12 13.58%
2023-07 10.93%
2023-12 8.12%

jacob
Site Admin
Posts: 15962
Joined: Fri Jun 28, 2013 8:38 pm
Location: USA, Zone 5b, Koppen Dfa, Elev. 620ft, Walkscore 77
Contact:

Re: SWR milestone record

Post by jacob »

0.6%

OTCW
Posts: 437
Joined: Thu Mar 31, 2011 12:55 am

Re: SWR milestone record

Post by OTCW »

Below 1% for the first time. 0.96%.

thef0x
Posts: 68
Joined: Mon Jan 29, 2024 2:46 am

Re: SWR milestone record

Post by thef0x »

Q4 2023: 6.38% SWR

I need to cut monthly spending by 9.25% to get to 4% and frankly I know we have done it but I'm hesitant to use shorter increments than quarters.

2023
NW accumulation (excluding home appreciation): +30%
Income / expenses: 373%
Savings Rate: 75%

thef0x
Posts: 68
Joined: Mon Jan 29, 2024 2:46 am

Re: SWR milestone record

Post by thef0x »

Q1 2024:

SWR*: 3.37%

* Updating my internal calculations to include the current paid equity in my home b/c I'm including the mortgage in the expenses calculations. Also added my DWs assets to the calculation as we're a combined household.

* Q1 2024 has been bullish for RE and equities (large cap growth).

Post Reply