What is the Ideal Retirement Portfolio Withdrawal Rate?

What is the Ideal Retirement Portfolio Withdrawal Rate?

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[MrNickAch]

The Four Pillar Freedom blog has a lot of awesome articles and graphics about compounding interest, FIRE, etc. an interesting graphic shows the true power of compounding interest at certain levels of wealth. $100k is a big barrier to cross. Once you hit $600k-$700k range, many would reach a level at which your passive income will grow at a higher rate than your living expenses. The article is called “The Math That Explains Why Net Worth Goes Crazy After the First $100k”.
A mind blowing statistic is that in virtually every case. It takes LESS time to go from $600k to $1M then it does to go from $0 to $100k.

[mightymouse]

You guys are great to watch! So knowledagable. I'm newer to the channel, were both your family's knowledgable about finance and that's where this all started or did it start with your generation and you are teaching your kids now?

[nickdoyle-achievefinancial]

I plan to RE and start converting traditional 401k to Roth in the 10 & 12 tax bracket, while living off dividends at 0%. Hopefully, it works out 😀

[m.allisonburdette]

Not as good as usual. Kept saying... it depends...kk... can you go into what it depends on... in detail, not so generally...or are you saying... if you have over a certain level, you are crazy not to have a financial planner?...to help figure this out....but good on keep it in the Roth... that was helpful...

[debbiemenghini]

You two are very interesting. Thank you, you only know what you know until you learn more and you two help a lot.

[vinylEarthlink]

There's nothing wrong with continuing to save, instead of withdrawing, particularly if you retire young. You might want to build up your assets in the first 20 years of retirement, and then coast.

[MrNickAch]

I believe 4% is slightly outdated. I always lean on conservative estimates for these kinds of calculations. I think you can get away with 4% if you retire at a traditional age around 65. However, if you plan on FIRE, my thoughts are that you target a lower percentage (maybe 3% or even lower if you can) for the first 5-10 years and then that’ll allow your army of dollar bills to still grow a crazy amount even while you’re retired!

[chemquests]

The rate depends on the size of the portfolio, assuming there’s a fixed amount you need to live.

[timewarptrio]

Which full episode is this part of? I'd love to see more?

[kennethwers]

And balancing ACA allowable guidelines before 65.

[alextemus]

The title isn't even the topic of discussion in the video. They discussed how different types of investment accounts can be used, not anything about the rate of withdrawal.

[livingunashamed]

Good stuff you want as much tax free money as possible. So jealous of people that have Roth 401ks, my company is so behind the times lol. With Roth 401ks you can convert it tax free to your Roth IRA so awesome.

[miriamstrauss]

To those reading this: hope you have an amazing day! Remember, you have unlimited potential ❤️

[wd]

So the answer is "it depends" and "it's complicated".

[kckuc]

Depends on really your tax bracket and to keep it low

[peterholtz]

Less than half accrued intrest unless on death door then party!

[DavidEVogel]

How much can I withdraw for my retirement portfolio and die broke? I plan to spend the money that I redeem.

[amythinks]

I don't quite understand why you want any money in the tax-deferred bucket. Can't you just put everything in the Roth bucket? Is there something you can put in the tax-deferred bucket once you've hit your Roth limit? I don't think so. I understand why you need the Roth. I understand why you need the brokerage account for when the limits are reached. I don't understand why you want a tax-deferred account. What am I missing?

[marc]

I want to end up with zero when I die.

[jonscrivner]

I find these infomercial type vids useless. I know they are well intentioned but they offer little. The decisions one must make are unforgiving and there are few, if any, do overs. I'd suggest read and use common sense. Good luck.