The retiree problem
While working, you buy dips with contributions. In retirement, you may sell into dips to eat. That sequence risk makes withdrawal planning different from accumulation.
Common frameworks
Rules of thumb (e.g., 4% of initial balance) are starting points, not laws. Your mix of taxable, traditional, and Roth changes the after-tax cash each dollar withdrawn produces.
Model spending in retirement
Mistakes
- Spending the same nominal amount every year without checking portfolio value.
- Ignoring RMDs and tax brackets until December.
Use the calculator
FAQ
- Is there one safe rate?
No universal rate fits every horizon and portfolio. Use ranges and adjust with conditions.