Yes, when you ask yourself the question “Will I outlive my money?” it’s true, it doesn’t exactly elicit a warm and fuzzy feeling. Sweaty palms is more like it. But it’s a question we all wonder about, especially after booking Business Class to Paris. Sorry kids!
In my first conversation with prospective clients, I can usually tell within about 17-seconds whether or not we’re a good fit. It mainly has to do with a grasp of reality. The cold reality of our recommended draw rate of three to four percent per year can set an early tone. And hearing “the lower the better” most definitely does.
Yes, of course, there are the exceptions to the rule. They go something like this: “E.J., you only live once!” or “You know, E.J., I’ve always wanted to go to…it’s on my bucket list”, or “E.J., it’s in a neighborhood that really holds its value.” It’s not always fun being that little guy on your shoulder.
But, in reality, there will be years when you spend more than other years. That’s just life. The key is to recognize them and plan accordingly. And, I might add, remembering that Premium Economy to Paris is quite comfortable.Maximum Portfolio Withdrawal Rate