If you retire at 65 with about $1.5 million saved, how much can you realistically spend each year?
It sounds like a simple question, but the answer is often very different from what people expect.
Many people start with a rule of thumb like the 4 percent rule, which would suggest around $60,000 per year from a $1.5 million portfolio. But in real life, retirement income does not usually work as a fixed amount that stays the same every year.
In this video, I walk through how that number can change depending on a few key factors, including when Social Security begins, how income is structured over time, and how taxes affect what you actually get to spend.
For many retirees, total income may fall somewhere in the $90,000 to $150,000 range. But more importantly, the portfolio does not always need to do the same job every year. In some cases, it carries more of the load early on and less later once other income sources begin.
Ultimately, retirement income planning is not just about picking a withdrawal rate. It is about understanding how the different pieces fit together and building a plan that can adapt over time.
If you are thinking about retiring around 65 and want to better understand what your savings can realistically support, this video will give you a clearer way to think about it.
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