Video: How Much Should You Spend in Retirement?


How much you can afford to spend in retirement?

It’s a question the majority of us inevitably face; yet it’s an answer that can prove elusive. This is where the 4% Rule can help. The 4% Rule is a general rule of thumb for how much you should be able to spend in retirement.

According to the rule, you should be able to spend about 4% of your starting nest egg value each year. So if you begin retirement  with a portfolio of $1 million, then that should support roughly $40,000 in annual spending. Keep in mind, each situation will vary by investor, so consult with your financial advisor to see if this makes sense for you.

Watch our video to learn about how the 4% Rule fits in to your long-term financial plan.

To learn more about this rule and 3 steps to take to manage your money, download the free Personal Capital’s Guide to a Better Financial Life.

Download Guide

The While-You-Wait video series goes over important financial topics when life puts us on hold.
Reheating your lunch? That’s the perfect time to watch. Leave a comment on what topics you’d like to see us cover next.


Personal Capital Logo

Like what you're reading?

Get tips, tricks, and tools sent right to your inbox.