We all look forward to and approach retirement in different ways. In order to retire comfortably, individuals must accumulate adequate savings over time. If you withdraw too much from your portfolio too early, you may run the risk of depleting your savings prematurely. Conversely, if you withdraw too little, you may lower your standard of living needlessly. How much can you withdraw annually from your retirement account while still making sure you have enough money to fund your remaining years of retirement? This is a question often asked by retirees and those approaching retirement. The issue then becomes finding the right balance of withdrawals to fund your years of retirement, i.e. determining a sustainable withdrawal rate.
Do You Know Where Your Money is Going?
March 15, 2014 By
Managing your finances can be a difficult and frustrating experience but something everyone needs to do regardless of what stage of life they are in. Much like taking a road trip across the country, you start with a destination in mind, “where do I want to be”, “what do I want to do”? Having a detailed description of where you want to go, how you will get there, and the time it will take, are the keys to a successful trip and the same applies in the budgeting process. Starting with a few simple steps it is easy to be on track to a successful budget.