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

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Obsidian seedy masturbator
  07/07/25
10mm
bearded deranged alpha
  07/07/25
fuck my ass.
maroon abode
  07/07/25
This seems about right. $10 million yields $300k pretax annu...
Obsidian seedy masturbator
  07/07/25
There is no 3% rule. No one needs to be that conservative. ...
twinkling location
  07/07/25
its not even that conservative dude. inflation, fees, fines,...
bearded deranged alpha
  07/07/25
To my mind, 3% is aggressive going forward and a 2.5% or eve...
Obsidian seedy masturbator
  07/07/25
3% cagr means you could live 45 years with $5M on $200K spen...
fiercely-loyal nudist mental disorder laser beams
  07/07/25
you are retarded if you pay an effective tax rate of 33% on ...
frisky motley business firm party of the first part
  07/07/25
Paying taxes is the law
Obsidian seedy masturbator
  07/07/25
Even if you are single, do no tax planning and have no deduc...
frisky motley business firm party of the first part
  07/08/25
You're forgetting state taxes 😵‍💫
Obsidian seedy masturbator
  07/08/25
$6m
geriatric personal credit line juggernaut
  07/07/25
$200k is this supposed to be some kind of a trick question
bat shit crazy sanctuary
  07/07/25
...
Plum stock car
  07/07/25
...
Cracking lodge place of business
  07/07/25
...
Comical bistre chapel
  07/07/25
Between $4m-$5m depending on how conservative/aggressive you...
twinkling location
  07/07/25
I said spend, so obviously I meant post-tax
Obsidian seedy masturbator
  07/07/25
Between $5.3m - $7.5m depending on various assumptions and d...
twinkling location
  07/07/25
what the fuck are you buying every year?
Talented regret goal in life
  07/07/25
I dunno. Might enjoy having a place to live, food to eat, c...
Obsidian seedy masturbator
  07/07/25
you can do that for far less even in blue states.
Talented regret goal in life
  07/07/25
Think of it this way. Hedge funds typically charge 2 and 20...
arousing home old irish cottage
  07/07/25
answers like this always amaze me on xo. basic percentages b...
bearded deranged alpha
  07/07/25
This makes no sense. OP, don’t think about it this way...
massive candlestick maker field
  07/07/25
And yet, the answer it gives (between 5 and 7 million) is th...
arousing home old irish cottage
  07/07/25
Lmao
grizzly parlor electric furnace
  07/07/25
you probably literally only need $4m for that. Assuming you...
Talented regret goal in life
  07/07/25
I'll probably have $10 million or thereabouts when I hit The...
Obsidian seedy masturbator
  07/07/25
the reality though is that you should actually spend the 200...
bearded deranged alpha
  07/07/25
You wanna try that again
Obsidian seedy masturbator
  07/07/25
he clearly meant "shouldn't"
Talented regret goal in life
  07/07/25
Depends, how much of the principal do you want to leave behi...
dun pozpig
  07/07/25
Leave behind for what
Obsidian seedy masturbator
  07/07/25
whatever you want my friend. kids, family, charity, etc.
dun pozpig
  07/07/25
fuck jews
Comical bistre chapel
  07/07/25
"Leaving behind" makes almost no sense unless you'...
twinkling location
  07/07/25
why is everyone assuming ~1/3 in taxes? that’s a high ...
maroon abode
  07/07/25
generally retirement income from QPs is ordinary income.
dun pozpig
  07/07/25
withdrawals from 401(k)s and the like, yes. but i don’...
maroon abode
  07/07/25


Poast new message in this thread



Reply Favorite

Date: July 7th, 2025 3:03 PM
Author: Obsidian seedy masturbator



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



Reply Favorite

Date: July 7th, 2025 3:04 PM
Author: bearded deranged alpha

10mm

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



Reply Favorite

Date: July 7th, 2025 3:09 PM
Author: maroon abode

fuck my ass.

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



Reply Favorite

Date: July 7th, 2025 3:10 PM
Author: Obsidian seedy masturbator

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=2Reputation#49079556)



Reply Favorite

Date: July 7th, 2025 3:10 PM
Author: twinkling location

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=2Reputation#49079558)



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Date: July 7th, 2025 3:12 PM
Author: bearded deranged alpha

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=2Reputation#49079572)



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Date: July 7th, 2025 3:15 PM
Author: Obsidian seedy masturbator

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=2Reputation#49079584)



Reply Favorite

Date: July 7th, 2025 4:07 PM
Author: fiercely-loyal nudist mental disorder laser beams

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=2Reputation#49079801)



Reply Favorite

Date: July 7th, 2025 5:30 PM
Author: frisky motley business firm party of the first part

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=2Reputation#49080104)



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Date: July 7th, 2025 6:20 PM
Author: Obsidian seedy masturbator

Paying taxes is the law

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



Reply Favorite

Date: July 8th, 2025 6:02 AM
Author: frisky motley business firm party of the first part

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=2Reputation#49081696)



Reply Favorite

Date: July 8th, 2025 11:01 AM
Author: Obsidian seedy masturbator

You're forgetting state taxes 😵‍💫

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



Reply Favorite

Date: July 7th, 2025 3:07 PM
Author: geriatric personal credit line juggernaut

$6m

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



Reply Favorite

Date: July 7th, 2025 3:08 PM
Author: bat shit crazy sanctuary

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

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



Reply Favorite

Date: July 7th, 2025 3:11 PM
Author: Plum stock car



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



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Date: July 7th, 2025 3:44 PM
Author: Cracking lodge place of business



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



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Date: July 7th, 2025 4:39 PM
Author: Comical bistre chapel



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



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Date: July 7th, 2025 3:11 PM
Author: twinkling location

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=2Reputation#49079563)



Reply Favorite

Date: July 7th, 2025 3:15 PM
Author: Obsidian seedy masturbator

I said spend, so obviously I meant post-tax

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



Reply Favorite

Date: July 7th, 2025 3:27 PM
Author: twinkling location

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=2Reputation#49079633)



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Date: July 7th, 2025 3:53 PM
Author: Talented regret goal in life

what the fuck are you buying every year?

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



Reply Favorite

Date: July 7th, 2025 3:58 PM
Author: Obsidian seedy masturbator

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=2Reputation#49079756)



Reply Favorite

Date: July 7th, 2025 5:14 PM
Author: Talented regret goal in life

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

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



Reply Favorite

Date: July 7th, 2025 3:36 PM
Author: arousing home old irish cottage

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=2Reputation#49079668)



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Date: July 7th, 2025 3:41 PM
Author: bearded deranged alpha

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=2Reputation#49079685)



Reply Favorite

Date: July 7th, 2025 3:50 PM
Author: massive candlestick maker field

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

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



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Date: July 7th, 2025 4:27 PM
Author: arousing home old irish cottage

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=2Reputation#49079896)



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Date: July 7th, 2025 3:59 PM
Author: grizzly parlor electric furnace

Lmao

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



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Date: July 7th, 2025 3:52 PM
Author: Talented regret goal in life

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=2Reputation#49079738)



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Date: July 7th, 2025 3:56 PM
Author: Obsidian seedy masturbator

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=2Reputation#49079751)



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Date: July 7th, 2025 3:59 PM
Author: bearded deranged alpha

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=2Reputation#49079762)



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Date: July 7th, 2025 4:01 PM
Author: Obsidian seedy masturbator

You wanna try that again

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



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Date: July 7th, 2025 5:15 PM
Author: Talented regret goal in life

he clearly meant "shouldn't"

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



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Date: July 7th, 2025 4:00 PM
Author: dun pozpig

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=2Reputation#49079773)



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Date: July 7th, 2025 4:02 PM
Author: Obsidian seedy masturbator

Leave behind for what

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



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Date: July 7th, 2025 4:02 PM
Author: dun pozpig

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

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



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Date: July 7th, 2025 4:39 PM
Author: Comical bistre chapel

fuck jews

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



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Date: July 7th, 2025 5:36 PM
Author: twinkling location

"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=2Reputation#49080120)



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Date: July 7th, 2025 4:22 PM
Author: maroon abode

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=2Reputation#49079865)



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Date: July 7th, 2025 4:46 PM
Author: dun pozpig

generally retirement income from QPs is ordinary income.

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



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Date: July 7th, 2025 8:34 PM
Author: maroon abode

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=2Reputation#49080738)