I am retired and 73 years old, where can you park

[progree]

45. On the 4% rule -

What I don't get about the 4% rule, is increasing your payout each year depending on that year's inflation. I only every few years find a need to slightly increase what I take from my investment portfolio.

They are saying that 4% of the first year amount, and increasing that first year dollar amount by the inflation rate is safe from running out in 30 years, given one has their nest egg invested in 50% stocks and 50% bonds, based on simulations of the past market and inflation history over rolling 30 year periods.

It's not a suggestion or requirement, if one can take out less than that, all the better .

It's for people who are really dependent on their nest egg ... if they consistently withdraw much more than the thumb rule allows, then there is a real risk of that nest egg running out before 30 years, based on simulations AAII (American Association of Individual Investors) and others do. (They also look at longer periods and look at different stock-bond allocations too). Some say you can do 4.5% + inflation instead of 4.0% + inflation. Others caution that with stock valuations higher than ever and the bond yields being so dang low, 3.5% + inflation is probably the prudent maximum.

I have no idea what my withdrawal rate was or is, now with the charitable gift annuity (payments began December 2017, on top of Social Security (which began in March 2017) I'm pretty sure I'm putting money in, not taking money out of my investment/retirement accounts.

I'm glad you seem to be experiencing almost zero inflation. But most people I think I can safely say are not -- certainly there are and have been loud lamentations about price increases on DU since I've been around. (EDIT- More broadly, the CPI is based not just on prices of some list of items, but actual sales - i.e. what people actually buy and how much, so in aggregate they are experiencing these price increases).

I know I'm not experiencing near-zero inflation. I keep seeing rising dental bills for the basic cleaning and checkup, property taxes going way up, home owner association dues going way up (80% in 17 years which equates to 3.5%/year), my Medicare Supplement premium up 27% in 4 years (equates to 6.16%/year ). Medicare Part B premiums have increased from $78.20/month in 2005 to 148.50 now, which is a 4.1%/year increase). Car prices ...

According to the experts, the CPI-E for elderly people exceeds the basic CPI, mostly because out of pocket healthcare costs are exceeding the general rate of inflation, and it certainly seems to be true judging from medical premiums.

Fidelity does a study every 2 years on what an elderly 65 year old couple can expect to spend on average on out-of-pocket medical costs including Medicare premiums, and its up to $300,000 now (more specifically the amount they would need to have saved now to cover costs in the future).

May your good luck hold