The Clark Howard Podcast 04.01.25 Ask An Advisor With Wes Moss
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Apr 1, 2025 Explore the nuances of retirement withdrawals, debating the shift from the traditional 4% rule to a riskier 5%. Discover how market corrections can impact emotions and strategies, emphasizing long-term resilience. Gain insights on smart stock donations to optimize taxes and learn the importance of adaptability in financial planning. The hosts tackle common audience questions, providing clarity and reassurance amid economic fluctuations. Tune in for practical tips to navigate investments and secure your financial future.
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Withdrawal Rate Importance
- Determine your retirement withdrawal rate, a crucial aspect of financial planning.
- This rate dictates how much you can spend annually without depleting your savings.
The 4% Rule
- The 4% rule, a benchmark for retirement withdrawals, aims to maximize spending without running out of funds.
- It suggests having at least 50% of your portfolio in equities for growth and inflation protection.
5% Withdrawal Rate?
- A recent study suggests a 5% withdrawal rate might be feasible, assuming higher returns from stocks and bonds.
- However, this approach carries higher risk, especially during periods of low market returns.