How Much Can You Safely Withdraw in Retirement The 4% Rule Explained
How much can you safely withdraw from your retirement savings without constantly worrying about running out of money?
The 4% rule is one of the best-known ideas in retirement planning — but your retirement cannot be reduced to a single percentage.
In this video, we work through a practical way to calculate what your portfolio actually needs to provide. We start with the cost of the retirement you want, subtract reliable income such as pensions or Social Security, and calculate the income gap your investments need to fill.
We then look at:
• What $100,000, $500,000 and $1 million portfolios could provide
• How the 4% rule actually works
• Why 3%, 4%, 5% or 6% can mean very different things
• Sequence-of-returns risk
• Why liquidity can matter during market falls
• Flexible retirement spending
• Dividends versus selling investments
• Taxes, fees and other deductions
• Preserving your portfolio versus spending some of your capital
• How to build and regularly review your own starting withdrawal plan
The objective isn't automatically to preserve every dollar you have accumulated. It is to use the assets you worked so hard to build with confidence, while giving yourself the freedom to enjoy retirement without constantly fearing that the money will run out.
This video is for educational and informational purposes only and does not constitute financial advice.
Always do your own research and consider your personal financial circumstances before making investment decisions.
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