Menu
Home
Advertise
Forums
Search forums
What's new
Unread posts
New articles
New article comments
Latest activity
Earn Money
Money apps
Passive Income
Paid Survey
Forex
Stock
Real estate
Paid to write
Social Media Earning
Review Website/Apps
Crytocurrency
Bitcoin (BTC)
Ethereum (ETH)
Crypto Exchange
Mining
Crypto Faucet / Airdrops
Binance
Business
Business strategy
Funding a business
Marketing
Digital Marketing
Social media marketing
Email marketing
Brand management
Personal Finance
Money Saving
Retirement
Personal loan
Savings for Students
Debt help
Tax relief
Insurance
Car Insurance
Life Insurance
Liability Insurance
Home Insurance
Health Insurance
Disability Insurance
FAQ
Log in
Register
What's new
Search
Search
Search titles only
By:
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Money Making Forums
Personal Finance Forums
Retirement
Pension retirement withdrawal strategies.
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
[QUOTE="Sam Dede, post: 4056, member: 20"] Common Pension retirement withdrawal strategies. The amounts will vary according to how the value of your investments fluctuate from year to year and inflation. [B]Dividends and capital gains are withdrawn under this rule. [/B] Many experts consider the 4% rate to be relatively safe since the regular withdrawals have an element of dividends and capital gains in them. After the 2008 recession, fewer advisors suggest the 4% retirement withdrawal strategy [B]Pros of the 4% retirement withdrawal strategy[/B] • The retiree is guaranteed steady funds after retirement. • The 4% rule also assists with retirement Cons of the 4% retirement withdrawal strategy • The rule can be restricting if 4% isn’t enough to sustain your standard of living. • Bear markets just prior to retirement or shortly after retirement can have a damaging effect on this strategy. • The experiments used only a withdrawal period of 30 years. • withdrawal is adjusted for inflation, more likely to run out of money if inflation rises significantly. ERW #2: 2% to 3% Rule Like the 4% thumb rule, withdraw funds at a lower rate of 2% to 3%. Dividends and capital gains under this rule can also be withdrawn and treated as explained under the 4% Rule. A 2015 study published by Morningstar and written by 3 retirement specialists, David Blanchett, Michael Finke, and Wade D. Pfau compared the 4% and 2% rules. [B]They concluded a 2% retirement withdrawal strategy was more realistic because: [/B] 1. More current model that considered lower interest rates and high stock valuations. 2. Factored in wealth management fees. 3. withdrawal period of 40 years as compared to 30 for the 4% retirement withdrawal strategy. 4. It’s no doubt retirees face unusually high valuation returns risk near the end of bull markets. The study adequately accounted for the heightened sequence of returns risk. $1,000,000 x 3% annual withdrawal $30,000. The 2-3% Retirement Withdrawal Strategy [B]Pros of the 3% Retirement Withdrawal Strategy[/B] - The rule is more realistic in terms of life expectancy after retirement. 40 years vs 30 years by the 4% rule. • Reflects more current economic times. • Considered that you may need the services of a professional. [B]Cons of the 3% Retirement Withdrawal Strategy [/B] • You only get 3% of your portfolio to live The cons with the 4% retirement withdrawal strategy also apply here. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Money Making Forums
Personal Finance Forums
Retirement
Pension retirement withdrawal strategies.
Top