Money in Your Pocket: Advice to make your retirement money last 25 years

Local News

When you retire, how much money can you take off of your investments and not run out of money?

Most financial advisers recommend that you can take 4% from your investments.

According to Morningstar, if you’ve got 50% bonds and 50% stocks (a common retiree mix) and you take 4% off, you have a 97% chance of not running out of money.

If you bumped that up to 5%, your odds of running out of money increase to 83%.  That’s why most advisers recommend being between 4% and 5%.

If you hit higher levels, then your odds of keeping your money really drop.  6% means you have a 57% probability of your money lasting 25 years.  7% means that you got less than a one third chance of having your money last 25 years.

4% is the sweet spot to make your retirement money last.
 

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