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Dynamic Retirement Withdrawals? Simple Pros, Cons, and Your Best One
A new report examines 5 dynamic withdrawal strategies for funding retirement — which one’s best for you?
Saving and investing for retirement, or as I prefer, “work-optional,” is one of the top financial goals for most of us.
At least once we have fewer work years ahead of us than behind…
Unfortunately, that doesn’t necessarily mean we all manage it well enough. According to DQYDJ.com, the median net worth for Americans aged 65–69 is $272k.
That sounds like a good deal of money.
However, remove home equity and it drops to just $75k!
How Much “Static” Retirement Income Can the Median Portfolio Provide?
None of us has a functioning crystal ball.
Financial planners try to forecast likely outcomes using history and/or Monte Carlo simulations.
According to the well-known “4% rule,” if you draw 4% of your portfolio’s value (if invested 50/50 in large-cap stocks and bonds) when you stop working and adjust annually by inflation, your money should last 30 years.
