Retiring with $1 million is something many people don’t come close to doing.
So if you’ve managed to amass an IRA or 401(k) balance that large, you should be proud
But you also don’t want your money to run out in your lifetime. If you’re wondering how much you can safely withdraw from a $1 million portfolio, the answer is, it depends on a host of factors. What’s a safe withdrawal rate for you?
The key to making your retirement savings last is establishing a safe withdrawal rate. And that rate should depend on a few factors, including how your savings are invested and how long a retirement you’re anticipating. If you have a portfolio that’s split fairly evenly between stocks and bonds and you’re retiring at a typical age, the popular 4% rule might work for you.