3 ms·
4% of 1M is $40k, not 50. The idea is you withdraw $40k/year and invest in low risk income funds that yield 2-3%/year. So withdrawing $40k gives you about 40-
by prepend 4y ago
4% of 1M is $40k, not 50.
The idea is you withdraw $40k/year and invest in low risk income funds that yield 2-3%/year.
So withdrawing $40k gives you about 40-50 years and that’s safe for most 65 year olds.
- nly 4y agoA 3% nominal yield doesn't even cover inflation, so you're not getting more than 25 years out of that $1M if you draw it down at an adjusted $40K/yr