Systemic Withdrawals / Fixed Percentage Withdrawals
This is probably the most well-known retirement income strategy. You take your investment portfolio and sell off a fixed withdrawal amount each year to generate retirement income.While this is a popular strategy, it is falling out of favor – particularly the recommendation to take 4% each year.According to many investment professionals, withdrawing from your nest egg at a rate of 4% is one way to hopefully ensure that you will still have money at your death. But, it’s not a hard and fast rule. Some argue that 4% is too much, some say it’s too little.And you know what? They’re both right because everyone has different circumstances and therefore, a different scenario and no one can predict what the stock market will do.The Boldin Retirement Planner allows you to play around with different fixed percentage withdrawal rates. You can specify any annual fixed percentage and the system models this value and you can see if it is in excess or below all other withdrawals (RMDs, one time expenditures and all other spending needs).