7. Calculate your safe withdrawal rate
If we all knew when we were going to pass away then we wouldn’t have to rely on guesswork when figuring out our withdrawal rates. However, you can still make an educated guess based on your health and family history.
Yet even with that data, it might not be enough. That’s why financial advisors say it’s best to withdraw 4% o of your savings during your first year of retirement. After that, you can start adjusting the amount based on inflation and expenses.
The aim of the game is to not run out of money, especially since you’ll be more vulnerable as you grow older and probably won’t have the means to make any more financial changes- or at least, it’ll be very difficult.