Many people use the 4% rule to guide their retirement withdrawals once they stop working. The rule proposes that withdrawing 4% from a retirement fund in the first year, followed by inflation-adjusted withdrawals every year after, should ensure money is available to last for a 30-year retirement.
For example, a retiree with a $1-million nest egg would withdraw $40,000 the first year. The next year, they would adjust that $40,000 to reflect the rate of inflation and take out that amount. When your retirement comes, consider talking to a financial advisor about a withdrawal rate that is right for you, and customized to your age and life expectancy.
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This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.
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©2022 Kmotion, Inc. This newsletter is a publication of Kmotion, Inc., whose role is solely that of publisher. The articles and opinions in this newsletter are those of Kmotion. The articles and opinions are for general information only and are not intended to provide specific advice or recommendations for any individual. Nothing in this publication shall be construed as providing investment counseling or directing employees to participate in any investment program in any way. Please consult your financial advisor or other appropriate professional for further assistance with regard to your individual situation.
