Safe Withdrawal Rates – ERN #9 (Extras)

by Mike Rawson · Published · Updated
by Mike Rawson · Published July 25, 2016 · Last modified January 21, 2020
by Mike Rawson · Published May 17, 2018 · Last modified January 14, 2020
by Mike Rawson · Published November 11, 2019 · Last modified January 14, 2020
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Those who do not remember the past are condemned to repeat it.
With regards to ERN’s Article 26 and the summary above on Flexibility, ERN and I had a recent discussion on this topic – see later comments to ERN’s SWR post #25 – and concluded that, as modelled by ERN, an individual needs to “find” about 2.5-3.0 times annual consumption of “flexibility” in the form of lower consumption, work or cash buffer. How people come up with it is up to individual preferences. If an individual cannot generate this much “flexibility” then they may well may need to cut back / work for many more years.