Set a withdrawal rate from your retirement investment accounts


Life’s Financial Journeys

Heading Off to College
Getting Out on Your Own
Blending Two Lives
Having a Child
Emptying the Nest
Entering Retirement
Divorce
Death of a Life Partner
Military Life

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


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

FOUNDATION OFFICE

NAPFA Consumer Education Foundation
8700 W. Bryn Mawr Ave., Suite 700N
Chicago, IL 60631
(847) 483–5400 ext. 106
foundation@napfa.org

 

PARENT ORGANIZATION
NAPFA.org