Have you heard of the "RMD-style" retirement withdrawal strategy? It involves taking a percentage of your portfolio each year based on life expectancy tables, which, on paper, ensures you never fully deplete your account. But retirement is not lived on paper.
Think about this: If your income changes every year based on market performance, what happens after a down year? Would you be comfortable taking a pay cut because your portfolio value dropped? If a formula built to avoid running out of money doesn't also protect your monthly cash flow, that is a seriously flawed approach.
How do you structure your withdrawals so that market downturns do not translate into spending cuts? Podcast host Johnny Dean and Rick “The Professor” Plum, CFP® tell you how to potentially protect both the short- AND long-term on this week’s episode of Managing Your Financial Future!
