Wealth Strategies Blog

Category Listing


Sort By: Title   |   Blog Date


Tuesday, October 4, 2016

How Much Retirement Income Should You Withdraw?

In the first few years of retirement, some couples “live it up” and seek to do all the things they have been dreaming to do, once they retire.  Many new retirees are told that a 4-5% annual withdrawal rate makes sense.  If you withdraw 4-5% from your retirement nest egg annually and your investments steadily earn about 5-6% each year, it is possible that your invested assets can last for many years. However, that’s the scenario when the economy is stable – what happens if your portfolio only returns 1-2%? 

Ultimately, the answer is highly personal.  There is no “standard” retirement income withdrawal rate.  Your withdrawal rate should be determined in consultation with your financial professional, who can help you evaluate some very important matters:  your risk tolerance, your age and health and your lifestyle needs.  With ongoing improvements in healthcare, today’s retirees stand a good chance of living into their eighties and nineties and longer.  This is a good reason to exercise a little moderation when scheduling retirement income.  Ideally you have a retirement income plan in place along with the help of a financial professional who can review your investments and income needs and adjust your withdrawal rate over the course of your retirement.


Posted by: Patrick Carroll at 10:13 AM
 | permalink


This material is intended for historical purposes and may be outdated. Its contents should not be relied upon as current information. For more up-to-date information regarding these topics, contact your financial professional.







All information herein has been prepared solely for informational purposes, and it is not an offer to buy or sell, or a solicitation of an offer to buy or sell any security or instrument or to participate in any particular trading strategy. Securities offered through Triad Advisors, member FINRA/SIPC. Advisory Services offered through ACI Partners, LLC. ACI Partners, LLC is not affiliated with Triad Advisors.