Your Money, Your Wealth What Retiring With $6 Million Really Looks Like - 549
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Sep 30, 2025 The hosts dive into effective retirement withdrawal strategies, debating the classic 4% rule versus a more nuanced guardrails approach. They explore what a $6M portfolio can support in annual spending while keeping the good life alive. A listener ponders the gap between retiring at 67 and waiting for Social Security at 70. Another couple, facing a state tax hike, gets tips on optimizing Roth conversions. Plus, they'll help those planning luxurious family vacations see how much they can spend without breaking the bank!
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4% Is A Planning Shortcut, Not A Strategy
- The 4% rule is a rule of thumb for savings targets, not a withdrawal strategy to run your retirement from.
- Sequence-of-returns risk makes fixed 4% withdrawals a poor standalone plan.
Use Guardrails For Flexible Withdrawals
- Use a guardrail approach with an upper and lower spending limit to adapt to market swings.
- Spend more in strong years and cut back in weak years to protect longevity of savings.
Plan Spending From Lifestyle Goals
- Start retirement by defining the lifestyle you want and build a budget around those goals.
- Back into how much you need, rather than asking the portfolio for a maximum spend first.