Health & Fitness
#20 of “21 Critical Retirement Questions Answered” One at a Time by Gene Offredi CFP© RFC
How much can I safely spend each year from my retirement funds?
Managing Your Retirement
Q #20: “How much can I safely spend each year from my retirement funds?”
Many experts advise retirees to follow the four percent rule. Feel free to spend about four percent of your retirement funds each year and your funds should last for your lifetime, no matter how long you live.
To keep your buying power from shrinking you may want to add the inflation rate to the four percent in subsequent years. For example, if you had $1,000,000 in your retirement funds your first withdrawal would be $40,000. The next year, if inflation was two percent you might consider living on $40,800 the next year (that’s $40,000 plus two percent of $40,000.) Just know that if you adjust for inflation your savings will run out sooner.
Click to download my FREE 44 page workbook. It will help you discover and apply your own answers that can lead you on your journey to the retirement of your dreams.
Summit Investor Coach, LLC is an investment adviser registered with Connecticut Department of Banking and Finance, who has not verified nor endorsed this website. This site should not be interpreted as a solicitation to offer investment advisory services to residents of any state where Summit Investor Coach is not authorized to do so.
