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

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Silver Roommate
  07/07/25
10mm
Milky Yarmulke
  07/07/25
fuck my ass.
floppy masturbator
  07/07/25
This seems about right. $10 million yields $300k pretax annu...
Silver Roommate
  07/07/25
There is no 3% rule. No one needs to be that conservative. ...
godawful coldplay fan
  07/07/25
its not even that conservative dude. inflation, fees, fines,...
Milky Yarmulke
  07/07/25
To my mind, 3% is aggressive going forward and a 2.5% or eve...
Silver Roommate
  07/07/25
3% cagr means you could live 45 years with $5M on $200K spen...
heady red lay
  07/07/25
you are retarded if you pay an effective tax rate of 33% on ...
slippery jewess school
  07/07/25
Paying taxes is the law
Silver Roommate
  07/07/25
Even if you are single, do no tax planning and have no deduc...
slippery jewess school
  07/08/25
You're forgetting state taxes 😵‍💫
Silver Roommate
  07/08/25
$6m
trip striped hyena
  07/07/25
$200k is this supposed to be some kind of a trick question
light bisexual house hairy legs
  07/07/25
...
Frisky Beta Step-uncle's House
  07/07/25
...
Odious Henna Nursing Home Brethren
  07/07/25
...
Frozen tank casino
  07/07/25
Between $4m-$5m depending on how conservative/aggressive you...
godawful coldplay fan
  07/07/25
I said spend, so obviously I meant post-tax
Silver Roommate
  07/07/25
Between $5.3m - $7.5m depending on various assumptions and d...
godawful coldplay fan
  07/07/25
what the fuck are you buying every year?
Cracking macaca set
  07/07/25
I dunno. Might enjoy having a place to live, food to eat, c...
Silver Roommate
  07/07/25
you can do that for far less even in blue states.
Cracking macaca set
  07/07/25
Think of it this way. Hedge funds typically charge 2 and 20...
Arrogant diverse area stain
  07/07/25
answers like this always amaze me on xo. basic percentages b...
Milky Yarmulke
  07/07/25
This makes no sense. OP, don’t think about it this way...
hairless cobalt parlor crotch
  07/07/25
And yet, the answer it gives (between 5 and 7 million) is th...
Arrogant diverse area stain
  07/07/25
Lmao
iridescent principal's office
  07/07/25
you probably literally only need $4m for that. Assuming you...
Cracking macaca set
  07/07/25
I'll probably have $10 million or thereabouts when I hit The...
Silver Roommate
  07/07/25
the reality though is that you should actually spend the 200...
Milky Yarmulke
  07/07/25
You wanna try that again
Silver Roommate
  07/07/25
he clearly meant "shouldn't"
Cracking macaca set
  07/07/25
Depends, how much of the principal do you want to leave behi...
Boyish saffron messiness
  07/07/25
Leave behind for what
Silver Roommate
  07/07/25
whatever you want my friend. kids, family, charity, etc.
Boyish saffron messiness
  07/07/25
fuck jews
Frozen tank casino
  07/07/25
"Leaving behind" makes almost no sense unless you'...
godawful coldplay fan
  07/07/25
why is everyone assuming ~1/3 in taxes? that’s a high ...
floppy masturbator
  07/07/25
generally retirement income from QPs is ordinary income.
Boyish saffron messiness
  07/07/25
withdrawals from 401(k)s and the like, yes. but i don’...
floppy masturbator
  07/07/25


Poast new message in this thread



Reply Favorite

Date: July 7th, 2025 3:03 PM
Author: Silver Roommate



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



Reply Favorite

Date: July 7th, 2025 3:04 PM
Author: Milky Yarmulke

10mm

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



Reply Favorite

Date: July 7th, 2025 3:09 PM
Author: floppy masturbator

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: Silver Roommate

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: godawful coldplay fan

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)



Reply Favorite

Date: July 7th, 2025 3:12 PM
Author: Milky Yarmulke

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: Silver Roommate

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: heady red lay

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: slippery jewess school

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: Silver Roommate

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: slippery jewess school

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: Silver Roommate

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: trip striped hyena

$6m

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



Reply Favorite

Date: July 7th, 2025 3:08 PM
Author: light bisexual house hairy legs

$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: Frisky Beta Step-uncle's House



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



Reply Favorite

Date: July 7th, 2025 3:44 PM
Author: Odious Henna Nursing Home Brethren



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



Reply Favorite

Date: July 7th, 2025 4:39 PM
Author: Frozen tank casino



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



Reply Favorite

Date: July 7th, 2025 3:11 PM
Author: godawful coldplay fan

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: Silver Roommate

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: godawful coldplay fan

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: Cracking macaca set

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: Silver Roommate

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: Cracking macaca set

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: Arrogant diverse area stain

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: Milky Yarmulke

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: hairless cobalt parlor crotch

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: Arrogant diverse area stain

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: iridescent principal's office

Lmao

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



Reply Favorite

Date: July 7th, 2025 3:52 PM
Author: Cracking macaca set

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: Silver Roommate

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: Milky Yarmulke

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: Silver Roommate

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: Cracking macaca set

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: Boyish saffron messiness

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: Silver Roommate

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: Boyish saffron messiness

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: Frozen tank casino

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: godawful coldplay fan

"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: floppy masturbator

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: Boyish saffron messiness

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: floppy masturbator

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)