22 votesSune Bjørn Andersen commented
It is a very important piece of information but the calculation is correct. You can retire earlier withdrawing 5% instead of 4%. This however increases risk that isn't part of the calculation. It shouldn't be part of the calculation but it is very important background knowledge of the calculation.
10 votesSune Bjørn Andersen commented
Maybe you could do this by changing the roi number. Say your target is 100k a year to live on. Tax wise this means that half will be taxed at rought 25% and the other half at roughly 50%. if the roi after inflation (7-2) is 5, then the math would be (5*0.75+5*0.5)/2 = 3.125 (this roi would include the premise that half is taxed 25% and half 50%). Also check out my site about FIRE in Denmark: www.frinans.dkSune Bjørn Andersen supported this idea ·