A Simple Formula for Calculating “Safe” Retirement Spending

For nearly two decades, the 4% rule has served as a benchmark of how much retirees can safely afford to withdraw from their nest eggs initially, with annual increases for inflation, and be reasonably certain they would not outlive their savings over a 30-year retirement. In the aftermath of the financial crisis of 2007 to…

 

Limiting Required Minimum Distribution Costs

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Retirement Withdrawal Calculator A withdrawal rate is a function of how much money you withdraw from your retirement fund each year. But what if you choose the wrong initial rate? If you choose a rate that is too high, you face possible shortfall risk…

 

Retirement Portfolio Survival: A 90-Year Study

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Retirement Portfolio Survival: A 90-Year Study: While a conservative allocation lasts 35 years at a 3% withdrawal rate, higher withdrawal rates require greater exposure to stocks. The measure of success in this study is whether or not a retirement portfolio can survive intact for at least…