If asked to calculate ROR Requirement for first year and given inflation is 3% and withdrawals are 100k:
Do you use 103k/Portfolio value?
It seems like if 100k is needed for living expenses, you would draw that from the portfolio for the first year and then in year 2 add 3% and take 103k. So your calc would be something like 100k/2Mill = 5% *(1.03) = 8.15%.
Different than 103k/2mill = 5.15% * 1.03 = 8.3%.
Perhaps its in the wording, as mentioned in previous threads. Opinions?