Retirement planning is critical if you want to enjoy your later years instead of worrying about money all the time. Unfortunately, many people aren't realistic about retirement and are at risk of ending up with a major financial shortfall because of it.
The first brutal truth to come to terms with is that you most likely can't withdraw as much from your retirement accounts as you hoped.
A safe withdrawal rate is now 3.7% instead of 4.00%. This downward revision was driven by lower future projected returns for investments and by the fact that life spans are getting longer.
If you have $1,000,000 saved, your accounts will produce $3,000 less in income a year - which is a lot, when your nest egg was only producing $40,000 to begin with under the 4% rule.
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