8 rules of thumb on saving and retirement
The rule: To make sure your retirement lasts, never withdraw more than 4 percent a year.
Why it works: This simple formula has proven accurate over time, helping people easily figure out a guideline for how much they should withdraw so as not to exhaust their retirement savings.
Grain of salt: Be sure to track how your portfolio is doing. If it takes a hit, adjust your withdrawals downward. Withdrawing 4 percent of what your portfolio used to be worth is a good way to deplete it quickly.