 Then you run up against the dreaded sequence of returns. You might plan to withdraw $40,000 a year for the rest of your life on your $1 million. But the market drops 50% and now it's as though you were taking out twice as much a year. In addition, you need 100% return to get back to where you were. There it is, my friends. Your entire concept of living off savings defunct in two paragraphs. Your system.