Customized dynamic 5% withdraw rule, what about you?

[itnetpro]

I have my own personalized dynamic withdraw rule I came up with that in theory should work fine for our 50/50 mix. Rather then the static rules like the traditional 4% exc, I’m curious what creative customized rules others here have developed and over what time period those rules have been tested.

Please don’t criticize mine, I’m comfortable with my choices. However, I would love to hear yours!

My 5% dynamic rule
50/50 mix bond/blended large cap equities.

3 year full income cash reserve (not included in mix) Earning 3.80% money market.

Need 2.5% take 5% from tax deferred. Amount taken designed to stay under 32% tax bracket
Excess amounts from 5% withdrawals, will be placed into PA muni fund to avoid state, local and federal taxes in taxable account.

No need to adjust for inflation. Income increased from accumulation stage 2.8x.
No pension, no ss until 70. Survival 40 years
6 future evens over next 15 years will either decrease cost or increase income.

1.25% withdrawn every qtr (5% year) -
Fund is balanced every 3 months by taking 1.25% from higher investment.

Floor set for total value of retirement assets based on starting investment.
When balance drops below floor, investment withdraws drop to 0% and cash reserve is used.

When balance recovers above floor, up to 2.5% per qtr (10% a year) can be withdrawn to bring reserve back 100%

Benchmarking portfolio back to 71 shows max 2.8 years under water.
In the event of double dip where cash reserve is unable to offset, withdraw can be set at 2.5% per year for extended duration if necessary.

In theory it works. We started living off retirement assets in Jan 23 and used reserve during downturn. Remains to be seen if system will be as effective in upcoming years. Based on max downturn from my mix of <30% in any given crash since 71. I’m confident, my mix will last.

Very interested in what customized approaches the rest of you have taken and how your system worked over previous downturns including .com, 2008 and 22 bond route?

John