I clicked through this lifespan calculator offered by Northwestern Mutual. Just click here to calculate your lifespan. Drawing down 1% per quarter (4% annually) from a portfolio is a good way to help avoid outliving one’s money.
Take a look at the chart below to see the effects a lower withdrawal rate will have on the lifespan of your savings. A $10,000 investment in 1945 would have lasted 54 years at a 4% annual withdrawal rate, but an 8% annual withdrawal rate would have burned through the nest egg in a mere 16 years. That’s not enough for today’s retirees who are living longer and longer.
Latest posts by E.J. Smith (see all)
- Your Questions, My Answers: Custodial Accounts and Gifts to Minors - November 16, 2018
- Your Retirement Life: Is Owning a Second Home a Good Idea? - November 16, 2018
- Your Retirement Life: College Towns - November 15, 2018