Summary: Financial experts recommend following the 4% rule for withdrawal during retirement. This news is neutral.

From Yahoo Finance: 2025-05-28 10:01:00

Conventional retirement advice suggests having $500,000 to $1 million saved up, with $1 million being the gold standard. Knowing how to use this amount is crucial for retirement planning. Financial experts recommend following the 4% rule when making withdrawals during retirement. A $500,000 portfolio could distribute $20,000 per year.

Research shows a well-managed portfolio can afford to provide 4% for withdrawal nearly indefinitely. Brian Kuhn recommends keeping your average withdrawal rate between 4% to 5%. Retirees facing financial challenges should consult with a financial planner for personalized guidance specific to their goals and risk tolerance.

Retirees may need to adjust their withdrawal strategy based on unexpected expenses. It’s important to estimate cash flow needs in retirement and create a Social Security strategy with the help of a certified financial planner. Personalized guidance can provide clarity on when to start claiming benefits and how to manage expenses effectively.



Read more at Yahoo Finance: Have $500K in Retirement Savings? Here’s How Much You Could Spend Per Year