Question - is it fair to use the 8% historical market average when doing these calculations (which include some of the most spectacularly productive periods in the American economy)? All the predictions I've seen going forward look like the average will be much lower (at least for the current generation), and a rate of 4-5% means you need a much larger nest egg to drawdown a livable amount each year in retirement.
Edit: It's not clear from the essay, but I'm assuming Patrick's 8% rate is not adjusted for inflation (based on his 40k drawdown scenario - the other 3-4% would cover inflation).
Edit: It's not clear from the essay, but I'm assuming Patrick's 8% rate is not adjusted for inflation (based on his 40k drawdown scenario - the other 3-4% would cover inflation).