A 6% Withdrawal Rate: Crazy or Possible?

Running out of money may be retirement’s most frightening concern, so it’s not surprising that people want to know how much of their nest egg they can safely spend. The 4% rule, identified by William Bengen, states that retirees who draw down 4% of their portfolio in the first year of retirement, adjusting every year for inflation, will likely see their money outlive them, assuming the portfolio has a 50-75% allocation to stocks. But what about people who want or need to spend more than that? Is 6% too high? On today’s episode, Wes breaks down the pros and cons and estimates the probability of success for a 6% withdrawal rate rather than 4%. With careful consideration and planning, he looks for a way to help listeners max out spending without running out of money. Learn more about your ad choices. Visit megaphone.fm/adchoices

Om Podcasten

Wes Moss is on a mission: help at least 1 million Americans of any age retire sooner and find joy along the way. A seasoned finance professional, best-selling author, broadcaster, and teacher, Wes has done extensive research on the habits of the happiest retirees. On this podcast, Wes shares key lifestyle and money habits you can implement now to prepare for a secure future while not depriving yourself of happiness in the present. In addition to leveraging his 20+ years of knowledge as an investment advisor, Wes brings in guests and specialists to teach you how to set and work towards your financial and lifestyle objectives. Refreshingly-free of mind-numbing financial jargon and unrealistic money goals, Retire Sooner with Wes Moss gives listeners the tools on how to retire sooner in the real world.