The Formula That Virtually Guarantees You Will Have Enough Saved for Retirement

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

The 4% Rule is the gold standard for retirement income withdrawal rates.

It’s states that you can pull about 4% per year (adjusted for inflation) from an investment portfolio in retirement as a consistent and predictable source of income.

This is considered a “sustainable” income withdrawal rate.

And what exactly does “sustainable” mean in this context?!

It simply means that if you stick to a 4% annual withdrawal from your retirement assets you have a very strong likelihood of that nest egg lasting for at least 30 years (regardless of the ups and downs of the market).

Now this isn’t a principal-preservation strategy it is truly a retirement income strategy.

And 4% provides “risk management” against taking too much money from your portfolio and thereby creating a big issue that most retirees fear…

Which is running out of money in retirement!

The 4% Rule doesn’t guarantee that income regardless of how long you live it simply leaves you an 80–90% success rate in retirement.

While The 4% Rule offers a very high success rate there is a better way to not only maximize your income in retirement but also decrease the overall risk of your portfolio.

Income Annuities are a tool I use frequently as a way to supplement any pension and/or Social Security Income that you may have.

In this way, you’re creating an income plan centered around market-independent income sources and therefore eliminating the risk the market will have on the bulk of your retirement income.

So, not only is this a way to safely pull income from your retirement assets, it actually allows you to take significantly more than 4% per year.

It’s also a way to ensure that a large portion of your income is guaranteed (no matter how long you live).

This addresses the number 1 concern for more retirees, giving them the freedom to fully enjoy their retirement and not worry about the possibility of running out of money.

But The 4% Rule Still Serves A VERY Important Purpose

You should still utilize The 4% Rule in one very important way…

In determining how much you need to SAVE for retirement.

Here’s how:

✅ Step 1: Take your desired annual income in retirement

✅ Step 2: Subtract out your anticipated pension & social security income at your desired retirement age

✅ Step 3: Divide that number by 4% (or 0.04)

This is exactly how much you should aim to have saved by the time you retire.

This virtually guarantees that you will have enough retirement assets to provide enough retirement income for the duration of your retirement.

AND, if you’re open to the idea of leveraging an insurance company for a portion of your income…

You can create even more guaranteed income (with more money able to stay invested for long-term growth and more flexibility).

Let’s Chat 💬😎