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

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Hideous Cocky Toilet Seat
  07/07/25
10mm
bateful state place of business
  07/07/25
fuck my ass.
exciting gold patrolman menage
  07/07/25
This seems about right. $10 million yields $300k pretax annu...
Hideous Cocky Toilet Seat
  07/07/25
There is no 3% rule. No one needs to be that conservative. ...
razzle-dazzle coldplay fan deer antler
  07/07/25
its not even that conservative dude. inflation, fees, fines,...
bateful state place of business
  07/07/25
To my mind, 3% is aggressive going forward and a 2.5% or eve...
Hideous Cocky Toilet Seat
  07/07/25
3% cagr means you could live 45 years with $5M on $200K spen...
Embarrassed to the bone aphrodisiac theater
  07/07/25
you are retarded if you pay an effective tax rate of 33% on ...
Ungodly national
  07/07/25
Paying taxes is the law
Hideous Cocky Toilet Seat
  07/07/25
Even if you are single, do no tax planning and have no deduc...
Ungodly national
  07/08/25
You're forgetting state taxes 😵‍💫
Hideous Cocky Toilet Seat
  07/08/25
$6m
cerebral circlehead sex offender
  07/07/25
$200k is this supposed to be some kind of a trick question
Offensive Masturbator
  07/07/25
...
180 judgmental police squad
  07/07/25
...
Passionate ceo bawdyhouse
  07/07/25
...
seedy titillating public bath
  07/07/25
Between $4m-$5m depending on how conservative/aggressive you...
razzle-dazzle coldplay fan deer antler
  07/07/25
I said spend, so obviously I meant post-tax
Hideous Cocky Toilet Seat
  07/07/25
Between $5.3m - $7.5m depending on various assumptions and d...
razzle-dazzle coldplay fan deer antler
  07/07/25
what the fuck are you buying every year?
vibrant narrow-minded stock car
  07/07/25
I dunno. Might enjoy having a place to live, food to eat, c...
Hideous Cocky Toilet Seat
  07/07/25
you can do that for far less even in blue states.
vibrant narrow-minded stock car
  07/07/25
Think of it this way. Hedge funds typically charge 2 and 20...
boyish prole institution
  07/07/25
answers like this always amaze me on xo. basic percentages b...
bateful state place of business
  07/07/25
This makes no sense. OP, don’t think about it this way...
charcoal blood rage
  07/07/25
And yet, the answer it gives (between 5 and 7 million) is th...
boyish prole institution
  07/07/25
Lmao
Pontificating keepsake machete stead
  07/07/25
you probably literally only need $4m for that. Assuming you...
vibrant narrow-minded stock car
  07/07/25
I'll probably have $10 million or thereabouts when I hit The...
Hideous Cocky Toilet Seat
  07/07/25
the reality though is that you should actually spend the 200...
bateful state place of business
  07/07/25
You wanna try that again
Hideous Cocky Toilet Seat
  07/07/25
he clearly meant "shouldn't"
vibrant narrow-minded stock car
  07/07/25
Depends, how much of the principal do you want to leave behi...
federal corner rigpig
  07/07/25
Leave behind for what
Hideous Cocky Toilet Seat
  07/07/25
whatever you want my friend. kids, family, charity, etc.
federal corner rigpig
  07/07/25
fuck jews
seedy titillating public bath
  07/07/25
"Leaving behind" makes almost no sense unless you'...
razzle-dazzle coldplay fan deer antler
  07/07/25
why is everyone assuming ~1/3 in taxes? that’s a high ...
exciting gold patrolman menage
  07/07/25
generally retirement income from QPs is ordinary income.
federal corner rigpig
  07/07/25
withdrawals from 401(k)s and the like, yes. but i don’...
exciting gold patrolman menage
  07/07/25


Poast new message in this thread



Reply Favorite

Date: July 7th, 2025 3:03 PM
Author: Hideous Cocky Toilet Seat



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



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Date: July 7th, 2025 3:04 PM
Author: bateful state place of business

10mm

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



Reply Favorite

Date: July 7th, 2025 3:09 PM
Author: exciting gold patrolman menage

fuck my ass.

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



Reply Favorite

Date: July 7th, 2025 3:10 PM
Author: Hideous Cocky Toilet Seat

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...id.#49079556)



Reply Favorite

Date: July 7th, 2025 3:10 PM
Author: razzle-dazzle coldplay fan deer antler

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...id.#49079558)



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Date: July 7th, 2025 3:12 PM
Author: bateful state place of business

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...id.#49079572)



Reply Favorite

Date: July 7th, 2025 3:15 PM
Author: Hideous Cocky Toilet Seat

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...id.#49079584)



Reply Favorite

Date: July 7th, 2025 4:07 PM
Author: Embarrassed to the bone aphrodisiac theater

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...id.#49079801)



Reply Favorite

Date: July 7th, 2025 5:30 PM
Author: Ungodly national

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...id.#49080104)



Reply Favorite

Date: July 7th, 2025 6:20 PM
Author: Hideous Cocky Toilet Seat

Paying taxes is the law

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



Reply Favorite

Date: July 8th, 2025 6:02 AM
Author: Ungodly national

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...id.#49081696)



Reply Favorite

Date: July 8th, 2025 11:01 AM
Author: Hideous Cocky Toilet Seat

You're forgetting state taxes 😵‍💫

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



Reply Favorite

Date: July 7th, 2025 3:07 PM
Author: cerebral circlehead sex offender

$6m

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



Reply Favorite

Date: July 7th, 2025 3:08 PM
Author: Offensive Masturbator

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

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



Reply Favorite

Date: July 7th, 2025 3:11 PM
Author: 180 judgmental police squad



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



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Date: July 7th, 2025 3:44 PM
Author: Passionate ceo bawdyhouse



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



Reply Favorite

Date: July 7th, 2025 4:39 PM
Author: seedy titillating public bath



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



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Date: July 7th, 2025 3:11 PM
Author: razzle-dazzle coldplay fan deer antler

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...id.#49079563)



Reply Favorite

Date: July 7th, 2025 3:15 PM
Author: Hideous Cocky Toilet Seat

I said spend, so obviously I meant post-tax

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



Reply Favorite

Date: July 7th, 2025 3:27 PM
Author: razzle-dazzle coldplay fan deer antler

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...id.#49079633)



Reply Favorite

Date: July 7th, 2025 3:53 PM
Author: vibrant narrow-minded stock car

what the fuck are you buying every year?

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



Reply Favorite

Date: July 7th, 2025 3:58 PM
Author: Hideous Cocky Toilet Seat

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...id.#49079756)



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Date: July 7th, 2025 5:14 PM
Author: vibrant narrow-minded stock car

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

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



Reply Favorite

Date: July 7th, 2025 3:36 PM
Author: boyish prole institution

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...id.#49079668)



Reply Favorite

Date: July 7th, 2025 3:41 PM
Author: bateful state place of business

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...id.#49079685)



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Date: July 7th, 2025 3:50 PM
Author: charcoal blood rage

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

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



Reply Favorite

Date: July 7th, 2025 4:27 PM
Author: boyish prole institution

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...id.#49079896)



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Date: July 7th, 2025 3:59 PM
Author: Pontificating keepsake machete stead

Lmao

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



Reply Favorite

Date: July 7th, 2025 3:52 PM
Author: vibrant narrow-minded stock car

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...id.#49079738)



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Date: July 7th, 2025 3:56 PM
Author: Hideous Cocky Toilet Seat

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...id.#49079751)



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Date: July 7th, 2025 3:59 PM
Author: bateful state place of business

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...id.#49079762)



Reply Favorite

Date: July 7th, 2025 4:01 PM
Author: Hideous Cocky Toilet Seat

You wanna try that again

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



Reply Favorite

Date: July 7th, 2025 5:15 PM
Author: vibrant narrow-minded stock car

he clearly meant "shouldn't"

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



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Date: July 7th, 2025 4:00 PM
Author: federal corner rigpig

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...id.#49079773)



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Date: July 7th, 2025 4:02 PM
Author: Hideous Cocky Toilet Seat

Leave behind for what

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



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Date: July 7th, 2025 4:02 PM
Author: federal corner rigpig

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

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



Reply Favorite

Date: July 7th, 2025 4:39 PM
Author: seedy titillating public bath

fuck jews

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



Reply Favorite

Date: July 7th, 2025 5:36 PM
Author: razzle-dazzle coldplay fan deer antler

"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...id.#49080120)



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Date: July 7th, 2025 4:22 PM
Author: exciting gold patrolman menage

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...id.#49079865)



Reply Favorite

Date: July 7th, 2025 4:46 PM
Author: federal corner rigpig

generally retirement income from QPs is ordinary income.

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



Reply Favorite

Date: July 7th, 2025 8:34 PM
Author: exciting gold patrolman menage

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...id.#49080738)