Last week, I wrote about the problem with retirement spending: How much should you spend during retirement? If you spend too much, you run the risk of depleting your savings. But if you spend too little, you’re sacrificing the opportunity to make the most of your money, to “drink life to the lees”. One of the guiding principles in retirement planning is that there’s a “safe withdrawal rate”, a pace at which you can access your investments so that your nest egg will last for thirty years (or longer). For simplicity’s sake, a lot of folks talk about the “four-percent rule”: Generally speaking, it’s safe to withdraw 4% from your investment portfolio every year without risk of running out of money.
The Four-percent Rule For Safe Withdrawals During Retirement: Theory Versus Reality
J.D. Roth, Get Rich Slowly
Tue, 06/12/2018 - 5:00am
Topics: this today the four-percent defined last august william bengen question answer inflation january add the fundamental problem last october for tanja mark gradually at spending since irs kris kim june fortunately withdrawals and i although i all i generally there s because i how do you spend when i but i m are theory i rv slowly i in i financial independence the four-percent fi here s ira that s i m our next life tanja social security my experience early that and buying time i ve do years year money expenses rate approach accounts cash lot account costs plan level spent average sell mutual future source wrote balance long annual large major sums bear taxable change lump haven home actual current amount shares access reason funds pace tax-advantaged encounter earn stocks rates research sort based enjoy hasn economy budget months longer decade lump-sum normal tax huge wanted run guess drops process health sale care fluctuates sold
BING NEWS:
- Ready to spend retirement savings? What to know about a formula for safe withdrawals
You’ve diligently saved for retirement, but how are you going to spend it? The standard rule-of-thumb is the so-called 4% rule ... his monthly retirement withdrawals almost doubled “while still ...
11/5/2024 - 3:12 am | View Link - The four percent rule: Is it a good retirement strategy?
The 4% rule says that if you retire with a million dollars, you should be able to spend $40,000 the first year of retirement and then increase that amount by the rate of inflation every year, and ...
10/29/2024 - 7:20 am | View Link - More
Welcome to Wopular
Wopular is an
online newspaper rack,
giving you a summary view of the top headlines from the top news sites.
Senh Duong (Founder)
Wopular,
MWB,
RottenTomatoes
MoviesWithButter : Our Sister Site
- "Expendables 4" Starts Shooting This Fall, Says Randy Couture at the Arnold Sports Festival more
- “Expendables 4” Gets Funding Interest from “Ip Man 3” Financier more
- "Ip Man 3" Distributor Suspected of Box Office Fraud, Parent Company Loses $200M in Market Cap more
- Yen Targets "Ip Man 4" for 2018 Release; Discusses Film with Director, Producer more
- "Ip Man 3" Shatters Expectations with $72M Opening [China Box Office] more