9 Ways to Not Run Out of Money in Retirement

3) Keep Withdrawals at a Minimum

If your withdrawals are too high when you retire, you will run out of money fast. You want your money to last, so you need to be careful with your withdrawals. Often when a new retiree is asked how much they can take out of their retirement plan each year and they come up with a figure that is two or even three times higher than they should withdraw to keep finances in order. In years when the markets aren’t performing well and are down, you’ll want to withdraw less, around 3.5% or in that range. If your portfolio is performing well and markets look good, you can take out some extra cash, around the 4.5% range or a little more. On average, keep those withdrawals setting somewhere around 4%. Remember, sometimes more is less and in this case, it means more money for your future.