By wordsthatecho
October 18, 2016

Maria Bruno, senior investment analyst at Vanguard, says the two questions people in retirement ask her the most are “How much can I spend?” and “How do I actually go about and do that?”

The answer to the first question really depends on how old you are, and how old your spouse is, if you’re married, when you retire. The rule of thumb is that you can safely spend somewhere between 3% and 5% of your portfolio annually—but where you fall in that spectrum depends a great deal on your age and your expected lifespan. Bruno also points out that you have to be flexible about these spending numbers because there’s a great year-to-year variation in how much retirees spend.

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