just listened (and just posted but lost it all due to cloudfare. thank you cloudflare). Anyway I didn't hear what you're suggesting in what Rick said (of course he's a boglehead and can comment as well on what he said or meant to say if it wasn't clear). I heard him say two things:
1. He said if your withdrawal rate is ridiculously low (my words) like 1% (his example) say $100k withdrawal on $10 mil (1% withdrawn) then you can "spend as much as you want" and you'll be fine. I think he meant by "as much as you want" you have another $300k ABOVE what you're used to or need to spend and STILL BE OK because the $300k and the $100k would be 4% withdrawn of the $10 mil. So if you're spending 1% you're fine and don't have to worry. Not because the portfolio's so big (in and of itself) but because the WITHDRAWAL rate is SO LOW.
2. He talked at the 53 min mark you linked about leaving money to heirs. In that descript he was saying if you want to leave your portfolio to your heirs in INFLATION ADJUSTED TERMS he gave the example that if inflation is 3% and he can reasonably grow your portfolio at 6% AND you have a 3% withdrawal rate then you can accomplish this goal (6% growth, 3% withdrawal, other 3% of 6% remains to grow the portfolio to MAINTAIN value due to 3% inflation). He wasn't necessarily drawing distinctions between large or small portfolios but rather what is taken out and what is left that is leftover growth AND how that compares to inflation if you intend to leave today's portfolio to your heirs, in inflation adjusted terms.
does that makes sense?
1. He said if your withdrawal rate is ridiculously low (my words) like 1% (his example) say $100k withdrawal on $10 mil (1% withdrawn) then you can "spend as much as you want" and you'll be fine. I think he meant by "as much as you want" you have another $300k ABOVE what you're used to or need to spend and STILL BE OK because the $300k and the $100k would be 4% withdrawn of the $10 mil. So if you're spending 1% you're fine and don't have to worry. Not because the portfolio's so big (in and of itself) but because the WITHDRAWAL rate is SO LOW.
2. He talked at the 53 min mark you linked about leaving money to heirs. In that descript he was saying if you want to leave your portfolio to your heirs in INFLATION ADJUSTED TERMS he gave the example that if inflation is 3% and he can reasonably grow your portfolio at 6% AND you have a 3% withdrawal rate then you can accomplish this goal (6% growth, 3% withdrawal, other 3% of 6% remains to grow the portfolio to MAINTAIN value due to 3% inflation). He wasn't necessarily drawing distinctions between large or small portfolios but rather what is taken out and what is left that is leftover growth AND how that compares to inflation if you intend to leave today's portfolio to your heirs, in inflation adjusted terms.
does that makes sense?
Statistics: Posted by arcticpineapplecorp. — Fri Oct 31, 2025 9:50 pm — Replies 1 — Views 160