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Implementing tax-efficient withdrawal strategies will help you maximize your retirement savings. Here are three strategies you can use: Withdraw from taxable accounts first .
For an interest-only retirement, you’ll need to have a large nest egg. How big a nest egg depends on your target income and the interest rate. For example, an annual income of $48,000 would ...
For example, if you want to withdraw $50,000 your first year of retirement, you’d need to save $1.25 million ($50,000 x 25) to follow the 4% rule. How long will $1 million last in retirement?
MVA applies when a withdrawal is made from the annuity in excess of the penalty-free amount. Generally, if interest rates are lower at time of the withdrawal than at the time the policy was purchased, the value of the annuity would increase. If interest rates are higher, the reverse is true. [9]
William P. Bengen is a retired financial adviser who first articulated the 4% withdrawal rate ("Four percent rule") as a rule of thumb for withdrawal rates from retirement savings; [1] it is eponymously known as the "Bengen rule". [2] The rule was later further popularized by the Trinity study (1998), based on the same data and similar analysis.
For example, if you want to withdraw $50,000 your first year of retirement, you’d need to save $1.25 million ($50,000 x 25) to follow the 4% rule. Why is the 4% rule outdated?
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