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@resjudicata Inflation in that period would destroy the value of a lump sum if you're thinking of it in terms of withdrawing a fixed amount every year. In your example, you're describing 54 years. 54 years ago, €100 was worth €1654 in today's money...

@elladig46 No, they have their own exit tax, which is 41%. https://www.revenue.ie/en/companies-and-charities/financial-services/collective-investment-vehicles/funds.aspx (Click on Offshore Funds Manual to see the tax rate).

@soikeonhanh Nothing really these days. The reward matches the risk ultimately - if you want a no risk return, it's gonna be very small, and won't keep up with inflation. Banks are businesses - if they're giving you money as interest, it's because they're making much more money from using it to...

@soikeonhanh You're the one doing the investing, you're buying shares of companies that you think will grow and that other investors in future will want to pay more than you for. Buying an ETF does involve a middleman but they're not off gambling randomly, they're just buying shares according to...

@porpoise But how do you feed yourself if you have literally no money?

@porpoise How confidently can you predict your last day? If you think you'll live to 90 and empty the bank account by then, how do you fund your 91st year? Regardless of how likely you think it is, you're fucked if you find yourself broke while still alive. If you want to overestimate and cover...

@spinuscyn I'd be going lower than 4% certainly if I was in a position to try it, just relaying what the rule of thumb is

@spinuscyn Most diversified ETFs like FTSE All-World or S&P500 trackers return an average of about 7% after tax - they approximately double in 7 years, minus 41% tax on the gain only, is 159% of the original investment, which is right about 7% CAGR.

@renewright "Safe withdrawal rate" is the term if anyone wants to look it up. It's an amount you can take out and expect that the overall return from a diversified portfolio will grow just about enough to keep up with inflation plus the amount you're taking out. Effectively this means your lump...