You’ve spent your whole life trying to understand how to save for retirement; we show you how to spend your money in retirement.
You’re probably wondering, “How much income can I safely take from my investments to sustain my retirement?”
We use academic research based on Bill Bengen’s original safe withdrawal rate article published in 1994 and carried on by Michael Kitces research, 20 Years of Safe withdrawal Rate Research, to answer that question.
The academic framework by Bill Bengen examined how a retiree’s spending would have been sustained by examing actual historical sequences of the market.
His research showed a withdrawal rate of 4% of the initial account balance adjusted for inflation was capable of surviving any 30-year market sequence.
Since Bengen’s 1994 article, numerous studies have expanded the safe withdrawal rate research to include other factors that make the safe withdrawal rate as high as 5.20% in some scenarios.
You will feel confident about how to spend your money in retirement while reducing your taxes.