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

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plum place of business church building
  07/07/25
10mm
lemon thriller antidepressant drug
  07/07/25
fuck my ass.
hideous institution voyeur
  07/07/25
This seems about right. $10 million yields $300k pretax annu...
plum place of business church building
  07/07/25
There is no 3% rule. No one needs to be that conservative. ...
maize macaca
  07/07/25
its not even that conservative dude. inflation, fees, fines,...
lemon thriller antidepressant drug
  07/07/25
To my mind, 3% is aggressive going forward and a 2.5% or eve...
plum place of business church building
  07/07/25
3% cagr means you could live 45 years with $5M on $200K spen...
Odious internet-worthy son of senegal
  07/07/25
you are retarded if you pay an effective tax rate of 33% on ...
Umber selfie school cafeteria
  07/07/25
Paying taxes is the law
plum place of business church building
  07/07/25
Even if you are single, do no tax planning and have no deduc...
Umber selfie school cafeteria
  07/08/25
You're forgetting state taxes 😵‍💫
plum place of business church building
  07/08/25
$6m
Bisexual soul-stirring pozpig
  07/07/25
$200k is this supposed to be some kind of a trick question
Stimulating doobsian electric furnace cruise ship
  07/07/25
...
Pearl electric piazza
  07/07/25
...
comical judgmental rehab
  07/07/25
...
Talented Outnumbered Indirect Expression Market
  07/07/25
Between $4m-$5m depending on how conservative/aggressive you...
maize macaca
  07/07/25
I said spend, so obviously I meant post-tax
plum place of business church building
  07/07/25
Between $5.3m - $7.5m depending on various assumptions and d...
maize macaca
  07/07/25
what the fuck are you buying every year?
nofapping psychic blood rage
  07/07/25
I dunno. Might enjoy having a place to live, food to eat, c...
plum place of business church building
  07/07/25
you can do that for far less even in blue states.
nofapping psychic blood rage
  07/07/25
Think of it this way. Hedge funds typically charge 2 and 20...
clear mental disorder feces
  07/07/25
answers like this always amaze me on xo. basic percentages b...
lemon thriller antidepressant drug
  07/07/25
This makes no sense. OP, don’t think about it this way...
aromatic trailer park
  07/07/25
And yet, the answer it gives (between 5 and 7 million) is th...
clear mental disorder feces
  07/07/25
Lmao
House-broken arousing casino roommate
  07/07/25
you probably literally only need $4m for that. Assuming you...
nofapping psychic blood rage
  07/07/25
I'll probably have $10 million or thereabouts when I hit The...
plum place of business church building
  07/07/25
the reality though is that you should actually spend the 200...
lemon thriller antidepressant drug
  07/07/25
You wanna try that again
plum place of business church building
  07/07/25
he clearly meant "shouldn't"
nofapping psychic blood rage
  07/07/25
Depends, how much of the principal do you want to leave behi...
adulterous hell factory reset button
  07/07/25
Leave behind for what
plum place of business church building
  07/07/25
whatever you want my friend. kids, family, charity, etc.
adulterous hell factory reset button
  07/07/25
fuck jews
Talented Outnumbered Indirect Expression Market
  07/07/25
"Leaving behind" makes almost no sense unless you'...
maize macaca
  07/07/25
why is everyone assuming ~1/3 in taxes? that’s a high ...
hideous institution voyeur
  07/07/25
generally retirement income from QPs is ordinary income.
adulterous hell factory reset button
  07/07/25
withdrawals from 401(k)s and the like, yes. but i don’...
hideous institution voyeur
  07/07/25


Poast new message in this thread



Reply Favorite

Date: July 7th, 2025 3:03 PM
Author: plum place of business church building



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



Reply Favorite

Date: July 7th, 2025 3:04 PM
Author: lemon thriller antidepressant drug

10mm

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



Reply Favorite

Date: July 7th, 2025 3:09 PM
Author: hideous institution voyeur

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: plum place of business church building

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: maize macaca

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: lemon thriller antidepressant drug

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: plum place of business church building

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: Odious internet-worthy son of senegal

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: Umber selfie school cafeteria

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: plum place of business church building

Paying taxes is the law

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



Reply Favorite

Date: July 8th, 2025 6:02 AM
Author: Umber selfie school cafeteria

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: plum place of business church building

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: Bisexual soul-stirring pozpig

$6m

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



Reply Favorite

Date: July 7th, 2025 3:08 PM
Author: Stimulating doobsian electric furnace cruise ship

$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: Pearl electric piazza



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



Reply Favorite

Date: July 7th, 2025 3:44 PM
Author: comical judgmental rehab



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



Reply Favorite

Date: July 7th, 2025 4:39 PM
Author: Talented Outnumbered Indirect Expression Market



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



Reply Favorite

Date: July 7th, 2025 3:11 PM
Author: maize macaca

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: plum place of business church building

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: maize macaca

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: nofapping psychic blood rage

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: plum place of business church building

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: nofapping psychic blood rage

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: clear mental disorder feces

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: lemon thriller antidepressant drug

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: aromatic trailer park

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: clear mental disorder feces

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)



Reply Favorite

Date: July 7th, 2025 3:59 PM
Author: House-broken arousing casino roommate

Lmao

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



Reply Favorite

Date: July 7th, 2025 3:52 PM
Author: nofapping psychic blood rage

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)



Reply Favorite

Date: July 7th, 2025 3:56 PM
Author: plum place of business church building

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)



Reply Favorite

Date: July 7th, 2025 3:59 PM
Author: lemon thriller antidepressant drug

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: plum place of business church building

You wanna try that again

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



Reply Favorite

Date: July 7th, 2025 5:15 PM
Author: nofapping psychic blood rage

he clearly meant "shouldn't"

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



Reply Favorite

Date: July 7th, 2025 4:00 PM
Author: adulterous hell factory reset button

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)



Reply Favorite

Date: July 7th, 2025 4:02 PM
Author: plum place of business church building

Leave behind for what

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



Reply Favorite

Date: July 7th, 2025 4:02 PM
Author: adulterous hell factory reset button

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

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



Reply Favorite

Date: July 7th, 2025 4:39 PM
Author: Talented Outnumbered Indirect Expression Market

fuck jews

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



Reply Favorite

Date: July 7th, 2025 5:36 PM
Author: maize macaca

"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)



Reply Favorite

Date: July 7th, 2025 4:22 PM
Author: hideous institution voyeur

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)



Reply Favorite

Date: July 7th, 2025 4:46 PM
Author: adulterous hell factory reset button

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: hideous institution voyeur

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)