You would think you would feel like a free bird when you graduate from working to retirement. But much like how you felt when graduating from school and entering the real world, when you enter retirement, there’s plenty of angst to go around. And while the name of the game in school is to strive for that 4.0, it turns out that in retirement, when it comes to your annual withdrawal rate, 4% is fine, 3% is better, and if you can do “2.0 and go” then you’re probably styling. Because in retirement, like limbo, it’s about how low you can go.
There’s no greater fear for retirees than outliving their money. If you spend it faster than the market replaces it, you’re running the risk that you’ll draw down your portfolio before you can afford to.
Action Line: When you want to talk about your portfolio and a plan for your retirement, email me at ejsmith@yoursurvivalguy.com. In the meantime, click here to subscribe to my free monthly Survive & Thrive letter.
Read Part I here.
