Morning Blend on Mater Dei Radio: “Investment Withdrawals in Retirement”
Investment withdrawals in retirement and the plans to get there is something we should be thinking about years before retirement.
This is tricky because we never really know when we are going to retire. There are many surprises that come up and ultimately change your timeline, but a good standard is to plan for at least 30 years of retirement.
Once you have an idea of the length of retirement you are planning for, you can start planning.
Research shows that the average withdrawal rate recommendation for a newly retired person is around 3% in the first year. Look at your current portfolio value and see how it would impact the value over time as you enter retirement. The main goal is ensuring your money will last you.
Your withdrawal rate will increase over time and is usually most impacted by your portfolio investment balance, inflation, lifestyle changes, etc.
Once you start making withdrawals from your retirement accounts, you discontinue contributions. There are always exceptions! Maybe you downsize your home and have a large contribution back into your accounts. This is of course okay, although somewhat uncommon.
Ultimately, planning ahead allows us more freedom and less stress in retirement years.
Listen to the interview
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Mater Dei Radio is a Catholic broadcasting apostolate dedicated bringing souls to Jesus through the Blessed Virgin Mary. We hope your faith will be inspired and deepened through our 24-hour radio broadcast, original shows and podcasts, community calendar, social media, and more!
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