It's critical to understand how much you can plan to take out of your retirement portfolio each year in retirement; taking too much or too little can affect your retirement plans. In this video, learn how to estimate how much income you can create from your portfolio in retirement.
- After spending so many years saving … and investing for retirement, … you might be wondering how it looks … to actually take money out of your portfolio in retirement. … The amount you take from your portfolio each year … in retirement is called your withdrawal rate. … If your withdrawal rate is too high, … you risk running out of money too soon. … But if it's too low, … you might miss out on experiences in retirement, … which isn't great either. … So what's the sweet spot? … A great rule of thumb … as you think about how much you can take out … of your portfolio each year in retirement … is called the 4% rule. … The 4% rule says that you should be able … to take out 4% of your portfolio each year in retirement, … and it assumes that your withdrawals will need … to be a little bit higher each year … to account for inflation. … By using the 4% rule, you should have a very low probability … of running out of money over a 30 year retirement. … So let's look at an example to bring this to life. …
This course was created by Madecraft. We are pleased to host this training in our library.