Going Infinite

The rate that resources accrue is faster than the rate that resources are spent. We typically view this from the perspective of wealth, and with no further action needed on the part of the entity going infinite. If you have to work to maintain the accrual and this work cannot be done by an 80 yr old monkey than it's not really infinite.


This means that your resources need to make more resources, you have to purchase investments rather than sit on cash. Inflation slowly works against cash and is a slow drain on your resources, so what accrue's has to surpass inflation and any amount you withdrawal to maintain your lifestyle.

This is where the 4% withdrawal rate and x 25 comes into play to give you an idea of when you have made it to infinity.

The amount that you spend in a year x 25 is the amount you need to go infinite 98% of the time using index funds.

That 2% does concern me at times so things to think about is that the worst bear markets are 30% declines and recover in 1-2 years. I've personally been in a market that took 10 years to get back to it's highest highs. If your paranoia is dialed to 10 make sure that your spending can get cut by 30% in a pinch.