Watch Your Withdrawals

Chart of the Week | February 19, 2013 | Topics: Retirement 

How Long Might Your Portfolio Last?

When it comes to retirement, you want your portfolio to live as long as you do. That's why it's so important to understand the long-term impact of your chosen withdrawal rate. Consider that withdrawing 6% instead of 5% annually cuts the life of your retirement portfolio by 11 years (assuming a 7% rate of return). Given longer life expectancies, that 11 years could represent more than half your retirement! Choose your withdrawal rate wisely, and don't be afraid to make adjustments.

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