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How large of a portfolio is needed to spend $200k annually indefinitely?

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Flatulent know-it-all hominid sandwich
  07/07/25
10mm
Filthy odious hell
  07/07/25
fuck my ass.
Apoplectic Purple Locus
  07/07/25
This seems about right. $10 million yields $300k pretax annu...
Flatulent know-it-all hominid sandwich
  07/07/25
There is no 3% rule. No one needs to be that conservative. ...
cerebral genital piercing
  07/07/25
its not even that conservative dude. inflation, fees, fines,...
Filthy odious hell
  07/07/25
To my mind, 3% is aggressive going forward and a 2.5% or eve...
Flatulent know-it-all hominid sandwich
  07/07/25
3% cagr means you could live 45 years with $5M on $200K spen...
twisted fragrant goal in life
  07/07/25
you are retarded if you pay an effective tax rate of 33% on ...
anal feces
  07/07/25
Paying taxes is the law
Flatulent know-it-all hominid sandwich
  07/07/25
Even if you are single, do no tax planning and have no deduc...
anal feces
  07/08/25
You're forgetting state taxes 😵‍💫
Flatulent know-it-all hominid sandwich
  07/08/25
$6m
Motley Yapping Menage Macaca
  07/07/25
$200k is this supposed to be some kind of a trick question
Bateful knife
  07/07/25
...
Stirring Crimson Community Account
  07/07/25
...
Bossy Submissive Resort
  07/07/25
...
shaky pozpig
  07/07/25
Between $4m-$5m depending on how conservative/aggressive you...
cerebral genital piercing
  07/07/25
I said spend, so obviously I meant post-tax
Flatulent know-it-all hominid sandwich
  07/07/25
Between $5.3m - $7.5m depending on various assumptions and d...
cerebral genital piercing
  07/07/25
what the fuck are you buying every year?
mustard magical university
  07/07/25
I dunno. Might enjoy having a place to live, food to eat, c...
Flatulent know-it-all hominid sandwich
  07/07/25
you can do that for far less even in blue states.
mustard magical university
  07/07/25
Think of it this way. Hedge funds typically charge 2 and 20...
gaped vivacious philosopher-king
  07/07/25
answers like this always amaze me on xo. basic percentages b...
Filthy odious hell
  07/07/25
This makes no sense. OP, don’t think about it this way...
outnumbered laughsome indian lodge becky
  07/07/25
And yet, the answer it gives (between 5 and 7 million) is th...
gaped vivacious philosopher-king
  07/07/25
Lmao
Aggressive Set Affirmative Action
  07/07/25
you probably literally only need $4m for that. Assuming you...
mustard magical university
  07/07/25
I'll probably have $10 million or thereabouts when I hit The...
Flatulent know-it-all hominid sandwich
  07/07/25
the reality though is that you should actually spend the 200...
Filthy odious hell
  07/07/25
You wanna try that again
Flatulent know-it-all hominid sandwich
  07/07/25
he clearly meant "shouldn't"
mustard magical university
  07/07/25
Depends, how much of the principal do you want to leave behi...
adulterous mildly autistic fanboi
  07/07/25
Leave behind for what
Flatulent know-it-all hominid sandwich
  07/07/25
whatever you want my friend. kids, family, charity, etc.
adulterous mildly autistic fanboi
  07/07/25
fuck jews
shaky pozpig
  07/07/25
"Leaving behind" makes almost no sense unless you'...
cerebral genital piercing
  07/07/25
why is everyone assuming ~1/3 in taxes? that’s a high ...
Apoplectic Purple Locus
  07/07/25
generally retirement income from QPs is ordinary income.
adulterous mildly autistic fanboi
  07/07/25
withdrawals from 401(k)s and the like, yes. but i don’...
Apoplectic Purple Locus
  07/07/25


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Date: July 7th, 2025 3:03 PM
Author: Flatulent know-it-all hominid sandwich



(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079518)



Reply Favorite

Date: July 7th, 2025 3:04 PM
Author: Filthy odious hell

10mm

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079524)



Reply Favorite

Date: July 7th, 2025 3:09 PM
Author: Apoplectic Purple Locus

fuck my ass.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079549)



Reply Favorite

Date: July 7th, 2025 3:10 PM
Author: Flatulent know-it-all hominid sandwich

This seems about right. $10 million yields $300k pretax annually under the 3% rule, and assume 1/3 tax rate

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079556)



Reply Favorite

Date: July 7th, 2025 3:10 PM
Author: cerebral genital piercing

There is no 3% rule. No one needs to be that conservative. There is no version of the Trinity Study which supports this.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079558)



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Date: July 7th, 2025 3:12 PM
Author: Filthy odious hell

its not even that conservative dude. inflation, fees, fines, taxes, etc gobble up all of your supposed "earnings". the economy isnt really growing faster than that.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079572)



Reply Favorite

Date: July 7th, 2025 3:15 PM
Author: Flatulent know-it-all hominid sandwich

To my mind, 3% is aggressive going forward and a 2.5% or even 2% rule is probably more appropriate

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079584)



Reply Favorite

Date: July 7th, 2025 4:07 PM
Author: twisted fragrant goal in life

3% cagr means you could live 45 years with $5M on $200K spend and not run out of $. If you can get 5% then you can do $4.2M and never have your balance drop.

edit: factor 2% inflation to the $200K spend - you'd run out of $ in 45 years with $5M

edit v2: I guess if you pay 25% taxes you'd run out of $ in 30 years vs. 44 and change, assuming you pay taxes on the $ you withdraw/spend

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079801)



Reply Favorite

Date: July 7th, 2025 5:30 PM
Author: anal feces

you are retarded if you pay an effective tax rate of 33% on 300k in investment income.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49080104)



Reply Favorite

Date: July 7th, 2025 6:20 PM
Author: Flatulent know-it-all hominid sandwich

Paying taxes is the law

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49080286)



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Date: July 8th, 2025 6:02 AM
Author: anal feces

Even if you are single, do no tax planning and have no deductions whatsoever, and every penny of income is STCG or dividends, the effective tax rate is still less than 25%. Additional medicare tax and NIIT pushes it to a bit over 26%. Even in the basic worst case scenario you don't pay 33%.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49081696)



Reply Favorite

Date: July 8th, 2025 11:01 AM
Author: Flatulent know-it-all hominid sandwich

You're forgetting state taxes 😵‍💫

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49082266)



Reply Favorite

Date: July 7th, 2025 3:07 PM
Author: Motley Yapping Menage Macaca

$6m

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079539)



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Date: July 7th, 2025 3:08 PM
Author: Bateful knife

$200k is this supposed to be some kind of a trick question

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079545)



Reply Favorite

Date: July 7th, 2025 3:11 PM
Author: Stirring Crimson Community Account



(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079562)



Reply Favorite

Date: July 7th, 2025 3:44 PM
Author: Bossy Submissive Resort



(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079697)



Reply Favorite

Date: July 7th, 2025 4:39 PM
Author: shaky pozpig



(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079950)



Reply Favorite

Date: July 7th, 2025 3:11 PM
Author: cerebral genital piercing

Between $4m-$5m depending on how conservative/aggressive you want to be. That's to get $200k pre-tax (increasing annually for inflation); you'd need to adjust upward if you want a post-tax figure.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079563)



Reply Favorite

Date: July 7th, 2025 3:15 PM
Author: Flatulent know-it-all hominid sandwich

I said spend, so obviously I meant post-tax

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079588)



Reply Favorite

Date: July 7th, 2025 3:27 PM
Author: cerebral genital piercing

Between $5.3m - $7.5m depending on various assumptions and desired level of conservatism.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079633)



Reply Favorite

Date: July 7th, 2025 3:53 PM
Author: mustard magical university

what the fuck are you buying every year?

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079741)



Reply Favorite

Date: July 7th, 2025 3:58 PM
Author: Flatulent know-it-all hominid sandwich

I dunno. Might enjoy having a place to live, food to eat, clothes to wear, and so on.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079756)



Reply Favorite

Date: July 7th, 2025 5:14 PM
Author: mustard magical university

you can do that for far less even in blue states.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49080051)



Reply Favorite

Date: July 7th, 2025 3:36 PM
Author: gaped vivacious philosopher-king

Think of it this way. Hedge funds typically charge 2 and 20 (2% management fee on the principal, plus 20% of that year's return as a performance fee). So think of yourself as the manager of your personal "fund".

If you assume you're getting an 5% rate of return on your invested capital on average (pretty conservative), then you'd need $6,666,667. This would give a management fee of $133,333 plus a performance fee of $66,667 (6,666,667 * .05 * .20), which adds up to $200k. If you assume a 10% rate of return (maybe too aggressive) then you'd only need $5 million.

I am ignoring taxes here, you'd need a higher amount if you want $200k post tax.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079668)



Reply Favorite

Date: July 7th, 2025 3:41 PM
Author: Filthy odious hell

answers like this always amaze me on xo. basic percentages but no reference to the fact that a guy who has 6.7mm in 2025 america shouldnt be thinking about "hedge funds" at all.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079685)



Reply Favorite

Date: July 7th, 2025 3:50 PM
Author: outnumbered laughsome indian lodge becky

This makes no sense. OP, don’t think about it this way.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079724)



Reply Favorite

Date: July 7th, 2025 4:27 PM
Author: gaped vivacious philosopher-king

And yet, the answer it gives (between 5 and 7 million) is the same as everyone else is saying. It's a reasonable rule of thumb that still lets the principal grow.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079896)



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Date: July 7th, 2025 3:59 PM
Author: Aggressive Set Affirmative Action

Lmao

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079760)



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Date: July 7th, 2025 3:52 PM
Author: mustard magical university

you probably literally only need $4m for that. Assuming you are reasonable with it. e.g., take out less during down market years, take out more when the market is up/stable.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079738)



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Date: July 7th, 2025 3:56 PM
Author: Flatulent know-it-all hominid sandwich

I'll probably have $10 million or thereabouts when I hit The Wall in a couple years

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079751)



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Date: July 7th, 2025 3:59 PM
Author: Filthy odious hell

the reality though is that you should actually spend the 200k or even 100k unless youre puting a kid through college or something.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079762)



Reply Favorite

Date: July 7th, 2025 4:01 PM
Author: Flatulent know-it-all hominid sandwich

You wanna try that again

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079775)



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Date: July 7th, 2025 5:15 PM
Author: mustard magical university

he clearly meant "shouldn't"

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49080054)



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Date: July 7th, 2025 4:00 PM
Author: adulterous mildly autistic fanboi

Depends, how much of the principal do you want to leave behind? Assuming all or most of it, and a 4-6% withdrawal rate and 35% estimated taxes you'd need between 5-7.5m.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079773)



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Date: July 7th, 2025 4:02 PM
Author: Flatulent know-it-all hominid sandwich

Leave behind for what

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079779)



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Date: July 7th, 2025 4:02 PM
Author: adulterous mildly autistic fanboi

whatever you want my friend. kids, family, charity, etc.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079783)



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Date: July 7th, 2025 4:39 PM
Author: shaky pozpig

fuck jews

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079946)



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Date: July 7th, 2025 5:36 PM
Author: cerebral genital piercing

"Leaving behind" makes almost no sense unless you're talking truly generational wealth, which the OP isn't. It's another shit boomer concept, i.e., it's cool to be shitty egoists all your life because you'll leave son Johnny and daughter Lisa $4.1m when you die at 93 which will somehow absolve your sins.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49080120)



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Date: July 7th, 2025 4:22 PM
Author: Apoplectic Purple Locus

why is everyone assuming ~1/3 in taxes? that’s a high blended rate for that level of income in the first place, and i wouldn’t think it would be too hard to structure most of the income as LTCG. this admittedly leaves aside the issue of taxes remaining close their current rates indefinitely.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079865)



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Date: July 7th, 2025 4:46 PM
Author: adulterous mildly autistic fanboi

generally retirement income from QPs is ordinary income.

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49079978)



Reply Favorite

Date: July 7th, 2025 8:34 PM
Author: Apoplectic Purple Locus

withdrawals from 401(k)s and the like, yes. but i don’t think someone with $5-10M in cash/stocks/bonds has most of that in a 401(k).

(http://www.autoadmit.com/thread.php?thread_id=5747172&forum_id=2],#49080738)