comments:
Just copied an extract of a post I wrote for someone else. Not the same circumstances so probably not optimal link but hopefully some links which may be useful, and references to UK calculations. May not be good news on the withdrawal rate assumptions but better to consider the pros and cons of different approaches. "I find that much of the more interesting and readable research is based on US data for a US audience. That might not be as relevant to a UK audience. On the other hand its interesting and thought provoking to read through. Lots of people refer to 4% as being a safe rate with no reference to timescales or to risks. For similar calculations performed for UK metrics: https://monevator.com/safe-withdrawal-rate-uk/#memberful_overlay I like the article above as it has links to related calculations to allow some degree of calculation and double checking. It also covers different retirement lengths. The writer performs the same calculation for a UK investor who had invested in US equities and US bonds.# A book covering similar topics for the uk: https://www.amazon.co.uk/dp/B07BBTZXWN?ref_=ppx_hzsearch_conn_dt_b_fed_digi_asin_title_351_14 Both these sources suggest lower rates than the US equivalent research advises, so perhaps worth reading as a but of an alternative view/ reality check. Both the monevator blog and the book give a fair amount of thought to asset mixes. From the more US focused sources Early Retirement Now is widely recommended. The safe withdrawal serious of posts always seems very useful to me. https://earlyretirementnow.com/safe-withdrawal-rate-series/ Possible posts to look at: Current equity valuations appear high - might that change the withdrawal rate and asset allocation one uses: https://earlyretirementnow.com/2016/12/21/the-ultimate-guide-to-safe-withdrawal-rates-part-3-equity-valuation/ Cash cushions: https://earlyretirementnow.com/2017/03/29/the-ultimate-guide-to-safe-withdrawal-rates-part-12-cash-cushion/ Equity glidepaths for early retirees: https://earlyretirementnow.com/2017/09/13/the-ultimate-guide-to-safe-withdrawal-rates-part-19-equity-glidepaths/ Calculations to show the upsides of working longer. I tried to rerun for my own circumstances and thought that for most UK FIREees the benefits would be more than noted in the article so may be worth considering: https://earlyretirementnow.com/2021/01/13/one-more-year-swr-series-part-42/ Safety and asset allocations: https://earlyretirementnow.com/2024/05/16/safety-first-swr-series-part-61/ From another writer I liked: https://medium.com/@justusjp/how-important-is-asset-allocation-versus-withdrawal-rates-in-retirement-375e7a72591b Again - US focused, shows calculations which suggests that asset allocations may not be as important as the extensive discussions suggest (such as 60:40 portfolios vs 80:20) Another post considers inflation risks: https://justusjp.medium.com/sequence-of-returns-risk-is-overstated-197b613c9641 And some review of the pros and cons of staying 100% in equities: https://justusjp.medium.com/100-equities-the-final-frontier-b9bca296154d I'll see if I can find a link to another blog I thought was very good - a couple who FIREd fairly young to travel the world. They show their case for 100% equities (although they seemed to have stayed with a 90:10 asset mix."