November Safe Withdrawal Rate – 38.87%

Since I was so lazy last month I didn’t get around to calculating October’s SWR. It probably wasn’t much different from September’s.  Since I’m not currently  adding anything to savings there isn’t much change in my SWR.

My SWR for November was 38.87%. That is a slight improvement from 39.48% in September. The improvement was due to value of my stocks increasing.  When I don’t add any money to my savings the only changes to my SWR and months of living expenses saved are from my investment performance and the average of my trailing twelve month’s of expenses going up or down.

My goal is to get the SWR down to 4% so the lower my SWR is the better. That goal is probably many years from being met. The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. Once I reach that point I will consider myself financially independent.

I have 30.86 months of living expenses saved which is a slight increase from 30.38 months saved in September. I calculate my months of living expenses saved by dividing the average of my trailing twelve months of expenses by my total money saved.

There won’t be any big changes to these numbers until I start working full-time again in January and can contribute more to my savings. I’m hoping in the meantime they will at least stay about the same.

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