Life’s Financial Journeys
Heading Off to College
Getting Out on Your Own
Blending Two Lives
Having a Child
Emptying the Nest
Death of a Life Partner
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:
Entering Retirement Tasks
1. Selecting your retirement lifestyle
2. Estimating your monthly retirement income
3. Setting up your spending plan
4. Enrolling in Social Security and Medicare
5. Managing taxes during retirement
Estimating your monthly retirement income Subtasks
1. Set a withdrawal rate from your retirement investment accounts
2. Estimate your Social Security and other income
3. Consolidate your IRA and 401(k) – type plans