The key to not running out of money in retirement is to set an appropriate withdrawal rate from your retirement nest-egg.
Many rules of thumb specify withdrawal rates that range from 4% to 5% of the portfolio’s market value per year. As with all rules of thumb, such a withdrawal rate may not work for all retirees.
Ideally, the amount of money provided by your withdrawal rate when added to any social security, pension or part-time employment income should be enough to meet your spending needs.
The following resources may assist you in understanding how to set a withdrawal rate from your retirement investment accounts:
Understanding the Types of Employer-based Retirement Plans
Safe Withdrawal Rate
Retirement Income Calculator
In-depth Look at Retirement Withdrawal Rates
Rules for Retirement Income Withdrawals
Understanding the 4% Withdrawal Rate Rule-of-Thumb
Vanguard’s Withdrawal Rate Calculator
The Real Costs of Retirement
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