Tuesday, July 21, 2009

More Retirement Planning Mistakes: Spending Your IRA Money Too Quickly

Monitoring how much money you take out of your IRA portfolio each year is crucial to you not outliving your money. 4% is the magic number that you could take out of your saving each year ($4,000 for every hundred thousand you have invested) and put yourself in a position for your money to last 30 years.

Take out more than that and you could run out of money before three decades are up.

Retire in a bear market and take money out when your portfolio is going down and you could run out of money in less than 15 years.

Retire in a bull market and your money could last forever.

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