I was recently interviewed by the Globe and Mail about my research on how much you can safely withdraw from your investments after you retire.
I analyzed 150 years or actual data on stock & bond markets and inflation to find out the exact success rates of different withdrawal amounts and methods.
I found that the “4% Rule” often used by financial planners has not been reliable with interest-focused investments, but has been with equity-focused investments.
The “4% Rule” says to withdraw 4% of your investments the year you retire and then just increase that amount by inflation for the rest of your life. It is a formula.
I found that you can withdraw more if you manage it the right way, not just follow a formula. I analyzed different methods of managing it and found you can withdraw up to 6% per year if you manage it the right way.
Click here for the article:
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