401 withdrawals
4% has been an adopted 401 withdrawal forever. I am 75. I have been withdrawing $4000 a month from my moderately aggressive Schwab account for 10 years. I started with @$750,000. My account has ranged from a high of $970,000 to a low of $650,000 during this period. It is currently @ $930,000. Am I just lucky? I wish I would have put it all in an S&P ETF.
Terry Says
You are lucky! The stock market is at all time highs! So the 4% withdrawal model has worked well — so far.
But if a bear market comes — and I’ve lived through three of them that lost 50%! — then you could be in trouble. Please read my latest columns on financial planning — especially this new one!
https://www.terrysavage.com/real-financial-planning/
