### Comment:
The 5/6% for retirement purposes is the annual drawdown which includes reduction in principal. 
  
  
 If you have $1 million at age 60, sure you could budget to use $50,000 per year until you die, cause you don't care about how much $ you have left in the account when you die. 
  
  
 Assuming a 7% return means the principal also has to remain whole. It's a totally different scenario.

### REPLY:
5/6% is considered a very high draw down, especially in volatile markets. I think a few years ago, a conservative drawdown % was 2.7%.

### END.