There are an endless number of strategies that you can use to plan your retirement.
Cashing out a set percentage of your investments every year once you retire can be an easy way to maintain your net worth while bankrolling your lifestyle.
You should aim to spend up to 4% of your nest egg per year in retirement, according to financial advisor Winnie Sun. That percentage can drop, however, based on several factors such as if your home isn’t paid off or if you have high health-care costs, said Sun, co-founder and managing director of Sun Group Wealth Partners in Irvine, California.
The strategy also assumes that you have a balanced portfolio, focusing more on bonds and cash-type investments for your short-term needs. This allows the stocks in your portfolio to grow, according to Sun.
Check out this video to see a few different case studies of how much spending money you’ll have if you retire on $750,000.
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