To help make sure your retirement income covers your needs and lasts for a lifetime, you need a custom plan. The 4% rule of thumb is a handy starting point, but it’s too general. Get specific to find your very own retirement number.
Read More »Is $1,000,000 Enough to Provide for a Successful 30-year Retirement? (+7K Views)
Withdrawing from a $1,000,000 nest egg upon retirement using the familiar 4% rule to generate a successful 30-year inflation-adjusted (3% per annum) retirement proved to be totally inadequate as per the retirement withdrawal strategy that I put forth in a previous article (1). In fact, it crashed and burned in year 25 of the 30-year plan! In fact, as I show in this article, it will only succeed if your portfolio outperforms the S&P 500 by 5% every year for 30 straight years - and what is the likelihood of that? Words: 1533
Read More »Following “the 4% Rule” In Retirement Is Mostly Unnecessary – Here’s Why
If you’re planning for retirement, it won’t take long before you come across the 4% safe withdrawal rate which goes something like this:
Read More »Use The 4% Rule To Thrive In Retirement – Here’s How
This post looks at the 4% rule to understand why it works so well in retirement, what could possibly be a stumbling block and how to overcome such a situation should it arise.
Read More »Don’t Use the 4% and 60-40 Investing Rules of Thumb – They’re Dumb! Here’s Why (+2K Views)
One of the things that really frosts me is the financial planning industry that insists on using rules of thumb such as the “set and forget” tools - specifically the 4% and 60-40 rules.
Read More »How much can I spend in retirement without running out of money? (+2K Views)
According to the 4 percent rule, retirees who withdraw 4% of their initial retirement portfolio balance, and then adjust that dollar amount for inflation each year thereafter, can create a paycheck that lasts for 30 years. The concept has recently been criticized given the fact that the current crop of retirees are entering retirement during a period of historically low interest rates so the question of how much a retiree can safely spend each year is now more important than ever. This article reviews the original concept and puts forth a number of variations to help you answer the question put forth in the title: How much can I spend in retirement without running out of money?
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