Unless you are 100% invested in a MSCI World index fund, then it doesn't work that way. And even then, you can support higher withdrawal rates by diversifying out of stocks. Many people wrongly have the idea that SWRs are some inherent attribute of the global stock market when in fact they are highly country and portfolio dependent.
Should we adjust the SWR based on last All Time High?
Re: Should we adjust the SWR based on last All Time High?
Re: Should we adjust the SWR based on last All Time High?
The stock market could continue to go up even though it's ATH. I think it would be better to compare it with the PE ratio. 50/PE would give you 3,33% SWR when the stock market is normally valued if we assume that a PE ratio of 15 is normal.