While $500,000 is a substantial retirement portfolio, it may not be enough to generate $5,000 in monthly income on its own. How much you can safely withdraw depends on your spending needs, investment returns and any other income sources, like Social Security or a pension. Let’s take a look at how the math works.
Can a $500,000 Portfolio Support $5,000 a Month?
To estimate how much income your savings can provide, start by comparing your spending goal with the size of your portfolio. The table breaks down the math for a $5,000 monthly income target:
A 12% withdrawal rate could put significant pressure on a portfolio that is expected to last 20…
Read the full article at SMARTASSET.COM
