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Irishbeast57 t1_j6cwnnw wrote

I think he is referring to the idea that you can safely withdraw 4% per annum and not lose your initial capital

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Sir-Viette t1_j6cx1ji wrote

Yes that's true. But inflation would mean that the same initial capital would buy 6.5% less every year.

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iamr3d88 t1_j6e84vn wrote

Over 20+ years, I you take 4% per year out while making 7-10% on average, your portfolio will grow with inflation. That's not guaranteed, but it pretty much works out that way.

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