Retirement and Systematic Portfolio Withdrawals
Retirement planning is certainly one of the most debated and important areas of financial planning. Each advisor and firm has a different approach when it comes to how they plan for retirement and how they help clients in retirement ensure that they have adequate income to last the rest of their lives. At its core, the components needed to plan for retirement are fairly clear: what are your guaranteed income sources during retirement and what are your variable sources? Similarly, what will your fixed expenses be and what will vary? Most retirees have social security, some have pension income, and most have financial portfolios from which they can take withdrawals over the course of several decades to complement those other income sources. That last point is our focus for today’s blog article: How much does one need to save and at what rate can one safely withdraw? Also, what is the ideal asset mix during those retirement years?