What is a Safe Withdrawal Rate in Retirement?

The Principle:

What does your retirement plan include when it comes to withdrawing from your accounts? Is there a magic number? Brian sheds some light on the strategy behind your withdrawal rate.

Honest Takes:

What is a safe withdrawal rate in retirement today? On today’s episode of the podcast, Brian talks about what you really need to focus on when it comes to withdrawing your retirement income and making choices. The four percent rule is a common rule of thumb when it comes to the percentage of what a reasonable withdrawal rate could be. But it really depends on the volatility of the market. What happens when the market goes down?

Sometimes we get caught up thinking about the rate of return or the withdrawal rate. But make sure to look at where you are getting your retirement income from. Instead of having the same portfolio and level of risk throughout all of your accounts, consider why you should invest differently. You have to look at your retirement income and make sure you have a solid plan. And then when you do withdraw, don’t forget about taxes! This may take away a big portion of what you withdraw.

Finally, where is Bitcoin right now? Brian shares the latest news when it comes to Bitcoin. Is it a worthwhile investment or more like gambling? Be sure to keep in mind your risk tolerance before putting any money in.

Listen to the entire episode or click on the timestamps below to skip ahead.  

[0:12] – What kind of retirement withdrawals can you take?

[3:27] – You shouldn’t have the same portfolio in all of your accounts.

[6:39] – Is Bitcoin going down?

Today’s Truth:

“Getting a higher rate of return isn’t always the most important in retirement (or withdrawal rates). It’s where you’re taking your income from.”

Brian Bowen

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The Host:

Brian Bowen – Contact