It’s the big question everyone wants to know the answer to…
How much money can I safely withdraw every year, so I don’t run out of money in retirement?
For decades Americans relied on the 4% Rule.1 Essentially this rule says you can safely withdraw 4% of your savings in the first year of retirement, and every year thereafter (adjusted for inflation) for at least 30 years without exhausting your portfolio.
But there’s one big problem: the 4% Rule was established in 1994. And the world has changed a lot since the 90’s.
Below are four reasons why using the 4% Rule today could cause you to run out of money in retirement…
- Historically, life expectancies are at an all-time high. So, it makes sense to plan to make your money last until you are 100+ years old.
- High inflation rates have significantly driven up the cost of living. 2 With today’s inflation rates, some expenses could double in less than 10 years.
- Some Wall Street commentators are cautioning that investment returns over the next several years could be much lower than investors expect.3
- Taxes are lower today than they’ve been in over a decade4. And given our record-breaking national debt, some tax experts warn that higher taxes could be just around the corner.5
Longevity, inflation, investment returns and taxes could all have a significant impact on your withdrawal strategy.
To learn more about what is a safe retirement withdrawal rate for your specific situation, contact us at email@example.com.
 Rate Inflation
 Motley Fool
 Tax Policy
 New Retirement
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