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.
The 4% Rule: A Starting Point
Brandy Burch, CEO at Benefitbay, suggested starting with the tried-and-true 4% rule.
“If you’ve got $1 million saved up for retirement, a good rule of thumb is the 4% rule, which means you could withdraw about $40,000 per year,”
The Guardrails Method: A More Flexible Approach
Tyler Meyer, founder at Retire to Abundance, introduced us to a more dynamic strategy called the guardrails method.
“This method starts with an initial withdrawal rate, similar to the 4% rule, but includes ‘guardrails’ to adjust withdrawals annually based on the portfolio’s performance.”
FoundingFrog
Article URL : https://finance.yahoo.com/news/1-million-retirement-savings-much-130015039.html