Rate of return to skip equities
Hi everyone. I recently cashed out of a business and am sitting on a big chunk of money, which is going to be the bulk of my retirement money.
Like most of you, I was planning on putting it in equities and taking about 4.5 percent every year to live(using guardrails)
It seems like most people rely on the market over time making about 10 percent when they do their calculations.
I am a just a couple of years from retiring and considering everything going on, deathly afraid a big crash will cut my account in half.
I know no one knows what will happen and I understand time in the market beats timing the market but heres my question:
What guaranteed interest rate would you have to get from another investment that you would decide not to get into equities?
For example, if I knew I get a guaranteed 6 percent interest somewhere with no chance of losing principle, would that make up for not getting an average 10 percent in the market with the risk of a drop? If not 6 percent, what about 7?
Hope that makes sense and thank you everyone taking time out to help others learn.