Many have heard of the 4% rule.
It states that at the beginning of retirement, you should be able to safely take 4% of the starting balance of your investment portfolio each year, and increase the withdrawal every year for inflation, without running out of money over a 30-year retirement.
There is much debate as to whether the rule is helpful, or even a good idea. Regardless, I think the following article by Retirement Research, Wade Pfau, is a good one.
https://www.thinkadvisor.com/2020/04/14/wade-pfau-virus-crisis-has-slashed-4-rule-nearly-in-half/
Thankfully, we don’t approach retirement in the traditional way of allocating to a stock and bond mix and relying on 4% withdrawals each year. By choosing non-traditional instruments and strategies, we can increase the portfolio withdrawal rate to 5% – 6% a year and get the same results.
If you have any questions, feel free to contact me.
