KLE 126: Looking For A Safe Withdrawal Rate

No Gravatar

When you are working towards your Number, you have income to pay the bills, and have a little fun.

Then, you are presented with the challenge of using the rest to try and prepare for the future …

But, when you begin Life After Work (a.k.a. Retirement or reaching Your Number) you are suddenly stuck with the opposite problem: using your nest-egg to create some form of sustainable income (a.k.a. Safe Withdrawal Rate).

So, what is a Safe Withdrawal Rate?

It is how much (i.e. what %) of your portfolio can you spend each year to (a) make sure that you have enough to live off each week/month/year (allowing for inflation pushing up the price of everything that you buy over time) and (b) make sure that your money lasts as long as you do?

Note: You need to be a Premium Member to view this content:

In the next KLE, I will introduce you to an even better strategy!

Be Sociable, Share!

Information and Links

Join the fray by commenting, tracking what others have to say, or linking to it from your blog.

Other Posts

Write a Comment

Take a moment to comment and tell us what you think. Some basic HTML is allowed for formatting.

You must be logged in to post a comment. Click here to login.

Reader Comments

Be the first to leave a comment!