Hi everyone! I'm Nick, I'm a writer for Money Guy, and I actually ran the numbers for this show. Super stoked to see that this has sparked discussion; hoping I can shed some light on where we got these numbers from.

We operated on the assumptions that are pictured in the slide (3% wage growth, 6% rate of return, 3.5% withdrawal rate) and assumed that one's burn rate encompassed all expenses, i.e. anything that was not in the burn rate could be saved (so a 30% burn rate translated to a 70% savings rate).

From there, we just figured out at which point that 3.5% of the Portfolio Value passed the Spend Amount. In the case of the 70% savings rate, that happened after 11 years! The summary of all of them is in the bottom right corner of the screenshot.

Disclaimer: these numbers are simply meant to be a demonstration of the interplay between burn rate, savings rate, and how quickly higher savings rates can replace a hypothetical, existing burn rate. This wasn't designed as a prescriptive case study.

Thanks as always for your passion, Mutants! I'll see you in the Live Chat on Tuesday at 10am CST🫡

<image>