The Independent Investor: How Much Is Too Much to Spend in Retirement?By Bill Schmick, 02:53PM / Thursday, July 17, 2014 | |
More and more baby boomers retire each year. One of the questions that trouble them the most is whether they have enough savings to last their lifetime. The answer largely depends on how much they plan to spend each year.
The historical guideline that most financial planners use is a 4 percent drawdown of your retirement savings after taking account of social security and other non-portfolio sources of income, such as rentals or part-time work. That number has been shown to provide most retirees with a comfortable living over the course of a 30-year retirement.
However, I advise my clients to use the 4 percent rule of thumb as a starting place and adjust along the way. Times
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