Optimizing Your Post Retirement Drawdown Plan

nesteggMuch debate has gone on in the personal finance community about the optimal amount you can withdraw from your nest egg in retirement so you don’t run out of money too soon. This is also applicable to you lucky folks who have been able to save well and retire early (or at least quit your day job).

The rule of thumb use to be 5%. Meaning you could safely take out 5% of your nest egg yearly without depleting your principle too fast or not at all over time. Lately investment gurus have been knocking that down to 4% which I believe is a pretty good idea given the current economy.

With that in mind I’ve come across a good plan of action to make your nest egg last as long as possible. Not sure where this originally came from but its sounds great to me.

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