Why You’ll Probably Never Run Out Of Money

Metadata

• URL: https://www.mrmoneymustache.com/2022/07/18/never-run-out-of-money/
• Published Date: 2022-07-18
• Author: [[Juan]]

Highlights

• And by tilting the balance ever further in the direction of “safety”, they forget about what should be on the other side of the scale, which is “making the most of your finite time on this lovely planet.”
• According to The 4% Rule, Alina’s nest egg will provide a pretty reliable income of roughly $80,000 per year for the rest of her life. Or to put it another way, her planned spending of $50k is only a 2.5% withdrawal rate from that 2 million. Since 4% is reasonably safe, 2.5% is a preposterously safe withdrawal rate.
• But this rule is incorrect. It is indeed possible to be “too safe”, because safety comes at a high cost – and the price is your own life.
• If you quit your job right now, what would a good, typical, and improbably bad scenario look like for your financial future? *
  • Then in the case of the “bad” scenario, write down, step by step, what it would really mean for you to run out of money.

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