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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Because everything is so much more expensive now. For example, food price has doubled since the pandemic. Your one million dollar at retirement translates only to $40k per year, which isn't much as you can imagine.[/quote]

Doubled? In 4 years? Definitely gone up a lot but let's not go crazy here. Got a gallon of milk yesterday for $3 and 12 eggs for $1.50.

And you need to hit a retirement calculator before you say $1 million is $40k/year. The money will grow, of course.[/quote]
Funny you only picked the cheapest milk and eggs. I know it has doubled for me because I rarely spent more than $100 each week at Costco before pandemic. Now I rarely spend less than $200 with the same type of stuff. For example, a pack of 40 bottles of water was $3 pre-pandemic and is now $7.39.[/quote]

Why are you buying 40 bottles of water a month?[/quote]
Because we have a family of four and don't drink tap water.[/quote]

Unless you live in Flint or someplace, bottled water is worse for you than tap water— it’s just tap water with microplastics.

[b]Also the 4% rule is conservative— it was based on the worst markets ever[/b].  And it allows for annual increases with inflation so you don’t need to keep it flat for 10 years. Bogleheads have been tracking a mythical retirement of someone who started drawing down funds in the 2000 recession/crash and it’s worked out fine. [/quote]
That's false too. 4% rule is there to minimize retirement income fluctuation and the risk of being wiped out. This is especially true if you only have one million dollars at the time of retirement.[/quote]

Not sure what your point is here. Some people in the thread were suggesting the 4% rule is outdated and should be 3.5%, or should be 4% with no inflation adjustment and [b]my point was it has been back tested thru some pretty bad market conditions[/b] (although IIRC the 4% assumes a decent chunk of bonds in retirement). [/quote]

NP, but to assume going above 4% is okay because market conditions have somehow permanently changed is a good way to blow up your retirement account. Over any 20-30 year period, you are going to have some really bad markets not unlike ones in the past.[/quote]

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