How to Safely Withdraw from Your $1 Million Retirement Fund
Saturday, 10 August 2024, 06:00
Understanding Safe Withdrawal Rates
You've hit the million-dollar mark in your retirement savings. Congratulations! But now comes the tricky part: figuring out how much you can safely withdraw each year without running out of money.
Factors to Consider
- Withdrawal Rate - A common guideline is the 4% rule, meaning you could withdraw approximately $40,000 annually.
- Inflation - Consideration of inflation rates is key to maintaining your purchasing power over time.
- Investment Performance - Your portfolio’s performance may influence how long your savings will last.
Conclusion
By understanding these factors and adjusting your withdrawal strategy accordingly, you can enjoy a financially secure retirement while maximizing your savings.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.