I'm not following. Tax free munis or corporate bonds throw off a 5-6% tax adjusted yield. You can always plow anything you don't spend back into fixed income to make up for inflation. So unless you are expecting massive inflation you'll be good.
Even a 5-6% tax-adjusted yield (which seems high, but I'm in Canada so I don't follow US rates too closely) is less than 5% after any inflation. Also corporate and municipal bonds are not without risk, although it's not large with proper diversification.
Parent implied the 20k/month was spending money. If you're reinvesting some of that money, then you're effectively reducing your withdrawal rate, in which case I agree. Also if you're willing to reduce your spending in the case of a downturn you could withstand a higher withdrawal rate. I'm just saying that a 5%+ real withdrawal rate is not sustainable indefinitely in a vacuum.
Comments
I'm not following. Tax free munis or corporate bonds throw off a 5-6% tax adjusted yield. You can always plow anything you don't spend back into fixed income to make up for inflation. So unless you are expecting massive inflation you'll be good.
Even a 5-6% tax-adjusted yield (which seems high, but I'm in Canada so I don't follow US rates too closely) is less than 5% after any inflation. Also corporate and municipal bonds are not without risk, although it's not large with proper diversification.
Parent implied the 20k/month was spending money. If you're reinvesting some of that money, then you're effectively reducing your withdrawal rate, in which case I agree. Also if you're willing to reduce your spending in the case of a downturn you could withstand a higher withdrawal rate. I'm just saying that a 5%+ real withdrawal rate is not sustainable indefinitely in a vacuum.