How much money can you safely withdraw from your investment portfolio each year during retirement?
One answer comes from a financial adviser who 30 years ago weighed the past performance of the stock and bond markets in a portfolio composed of 60% equities and 40% bonds. He calculated that retirees could safely withdraw 4% of their savings during the year they retire and adjust that amount for inflation each subsequent year. He claimed a retiree wouldn’t run out of money for at least 30 years of retirement under this plan.
