Double Your Withdrawal Rate From A Stock Portfolio (and create a volatility buffer)

(don’t forget to checkout the video of this blog too)

One of the big questions going into retirement is how much you can safely withdraw from a portfolio❓

Experts say that you shouldn’t take more than 4% per year out as retirement income.

This is to minimize the risk of your portfolio not lasting all the way through retirement….

In other words, this is a safe withdrawal rate that lowers your risk of running out of money in retirement, which is almost every retirees’ biggest fear.

Following The 4% Rule accounts for fluctuations in the market during retirement, ensuring that you aren’t taking excessive income withdrawals when the market has lost value (and therefore accelerating the depletion of your retirement nest egg).

But the problem with The 4% Rule is that it doesn’t generate a whole lot of income.

For example: $1M can only generate about $40,000 per year of retirement income following the 4% rule

That means you have to have $2.5M invested just to generate $100,000 of income in retirement.

But what if you could double your withdrawal rate from a stock portfolio⁉️

And I’m not even talking about using an income annuity to create leveraged, guaranteed income in retirement.

I’m talking about ALSO taking an 8% annual income withdrawal from your money in the market (in addition to the possibility of leveraging an income annuity as well).

Seems risky, right⁉️

Well, it’s actually not…

You’re just simply not withdrawing income from the market when the market is down…

But…you still need income in retirement, so how is that even possible❔

You shoot to have about 4–5 years worth of savings sitting somewhere that is NOT dependent on market performance.

This could be a savings account, an investment account made-up primarily of bonds, or my personal favorite…

A cash value life insurance contract.

Either way, these give you the ability to mathematically withdraw a higher amount of income from your portfolio…

WITHOUT taking on any additional risk of running out of money in retirement.

They also allow you to buffer yourself from market volatility so that you never have to take money out of a stock portfolio when the market is down…

Let’s Chat 💬😎