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I’m in my late 70’s and when my son gave me this book, I honestly thought it was too late to change my planning, and that the important decisions were already made and it was too late to change them. After reading, I find it fascinating that I have so many options. Thank you for opening my eyes to the possibilities I have at this point in my life.
I am Age 60 to 100
One thing you do not cover in the book is safe withdrawal rates. I’ve heard that a traditional safe withdrawal rate is 4%. Can I still use this rate?
I am a Florida Resident
The traditional 4% safe withdrawal rate is great for estimation, but not the final answer. If you are saving for retirement and want to get an idea of how much you could safely afford to spend, then using the 4% traditional safe withdrawal rate is fine. However, a true “safe” withdrawal rate depends on the amount you have saved, the types of vehicles you save in, the tax treatment of those vehicles, your age or time horizon to retirement, and the performance of your investment portfolio. Once you get closer to retiring you should sit down with your advisor and run the numbers to find out exactly what you can spend in retirement so that you don’t outlive your money.