If you need to withdraw $10,000 each month from a $1 million portfolio, that’s a 12% annual withdrawal rate. Sustaining this rate over a long retirement could increase the risk of depleting your savings. However, the gap between your spending goal and what your portfolio can support isn’t necessarily a dead end. Other income sources, a different withdrawal strategy and adjusting your timeline could help you make the math work.
Why a 12% Withdrawal Rate Can Fall Short Over Time
Withdrawing $10,000 per month from a $1 million portfolio could deplete your nest egg within 15 to 20 years. Here’s what can happen in the first five years:
By the fifth…
Read the full article at SMARTASSET.COM
