Question Mark: How much should I take out each year?

August 15, 2022


So now I’ve saved all of this money for retirement. Now I’ve decided to retire. How much should I pull out?

And for years and years and years, there has been something called the 4% rule. If I can withdraw 4% of my savings in general, I should be able to live on that amount of savings.

Unfortunately, with the fluctuations in the stock market and where interest rates are currently, that 4% rule really doesn’t hold up anymore.

So again, the best way to determine how much you need is to sit down and literally make a T chart. How much income are you bringing in from all of your sources? How much expenses am I taking? What is it costing me to live and what’s left over?

So the best way again, is to really determine how much you need and start withdrawing just a small amount, and you can increase that over time.

For more answers to common retirement planning questions, check out the rest of the Question Mark: Retirement Planning series.