Questions you can ask your UBS Financial Advisor:
- What withdrawal strategy will help me minimize the probability of running out of money in retirement?
- How can I avoid leaving a larger bequest than intended—money I would have preferred to spend?
- What is a “safe” withdrawal rate from my portfolio? What is the right rate for me?
Many retirees share one core question: How much can I safely withdraw from my portfolio each year?
Unfortunately there’s no perfect answer. Drawing down your retirement savings too aggressively can put you at risk of outliving your assets. Withdrawing too conservatively, however, may cause you to leave behind a large bequest that you may have preferred to spend.
When deciding on a withdrawal strategy, retirees are also confronted with many unknowns, like future portfolio returns, inflation and longevity—which means withdrawals are based on probabilities, not certainties.
CIO Americas, Wealth Management (CIO) examines three common withdrawal rules and discusses their validity in the current environment in the latest edition of Modern Retirement Monthly: A new look at safe withdrawal rates
- The 4% rule
- Dynamic Safe Depletion Rate
- Annualized Recalculated Virtual Annuity
Understanding these approaches can be a good starting point for determining your own withdrawal strategy, as part of a comprehensive financial planning process.
Are you doing all you can to have the retirement you want? Together we can find an answer. Connect with your UBS Financial Advisor today or find one