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Portfolios 310: How to Withdraw from Your Portfolio in Retirement

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1.
Once you have multiplied your withdrawal rate factor by your total investable assets for retirement, let's say you come up with $35,000. This will be the amount you can spend each year of your retirement.
Choose wisely. There is only one correct answer.
False. Given that you must adjust for inflation each year, the $35,000 would be good for your first year only.
2.
You want to withdraw 6% per year from your portfolio over the next 30 years, which you expect to return 8% per year. Will your portfolio last your lifetime?
Choose wisely. There is only one correct answer.
Maybe--it depends on the actual returns you experience each year. The actual returns you experience each year in retirement make a huge difference in how much you can spend each year. Averages aren't enough.
3.
If you aren't satisfied with your withdrawal rate from your portfolio, what can you do?
Choose wisely. There is only one correct answer.
Accept a lower confidence level. You can also put off retirement or adjust your asset mix to possibly increase your withdrawal rate.
4.
What do changing healthcare costs, vacation costs, and other expenses mean for your portfolio's withdrawal rate after you retire?
Choose wisely. There is only one correct answer.
You will likely need to adjust it. Some expenses will drop, while others will rise. While one cannot say with certainty, this is the probable outcome.
5.
Your retirement time horizon will be how long your portfolio lasts before running out.
Choose wisely. There is only one correct answer.
False. Your retirement time horizon will be how long you expect to draw on your portfolio, not how long it actually lasts.
6.
How do most retirees cover their expenses?
Choose wisely. There is only one correct answer.
With a combination of their investments and fixed sources of income. The more fixed sources of income you have, the lower your withdrawal rate can be.