Question 1

What is a safe withdrawal rate in retirement?

Accepted Answer

The 4% rule is commonly cited: withdraw 4% of your portfolio in the first year, then adjust for inflation. Studies show this rate allows a portfolio to last 30+ years in most historical scenarios.

Question 2

How much do I need to save for retirement?

Accepted Answer

A common rule is to have 25 times your annual expenses saved (the inverse of the 4% rule). For example, if you spend $40,000/year, aim for $1,000,000 in retirement savings.

Question 3

What return rate should I use for projections?

Accepted Answer

A diversified portfolio of stocks and bonds has historically returned 6-7% per year (after inflation ~4-5%). Use a conservative 5-6% rate for a realistic estimate.

Question 4

How does inflation affect my withdrawals?

Accepted Answer

Inflation increases the cost of living each year. This calculator adjusts your withdrawals for inflation, meaning you withdraw more in nominal dollars each year to maintain your purchasing power.

Retirement Calculator

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Retirement Calculator

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Retirement Calculator

FAQ

What is a safe withdrawal rate in retirement?

How much do I need to save for retirement?

What return rate should I use for projections?

How does inflation affect my withdrawals?

Retirement Calculator

FAQ

What is a safe withdrawal rate in retirement?

How much do I need to save for retirement?

What return rate should I use for projections?

How does inflation affect my withdrawals?