How much should I take from my investments?

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Edward Jones - Chad Choate, AAMS

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Jul 08, 2021

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Florida - Sarasota, Bradenton & Charlotte Counties

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It's a good question to ask, and an important one. Because how much you withdraw from your portfolio each year can play a big role in how long your money could last.
It's taken a lifetime of saving and investing to get to this point. So, now what? How much money can you use from your investments to spend in retirement? It's an important question because how much you withdraw from your portfolio each year can play a big role in how long your money could last. We can help you find the answer.
Life wasn't predictable when you were working full time. That doesn't change in retirement. That's why we believe withdrawal rates (or how much you take from your investments each year) should be modest.
Adjust your strategy, if needed
Having a retirement income strategy can help give you an intangible, but critical resource flexibility. This means you're better prepared to handle whatever life brings your way. YourEdward Jones financial advisorwill talk with you to understand what you want to do and how much you want to spend. Then, you can work together to create a strategy that's specific to you.
Our guidance for withdrawal rates below can serve as a good starting point to determine if your expectations are realistic. This guidance assumes you'll spend a bit more each year to account for inflation, and that you'll live until at least age 90.
Initial withdrawal guidance Age in Retirement, More Conservative, Less Conservative, 
Early 60s
3.0 %
4.0 %


Late 60s
3.5 %
4.5 %


Early 70s
4.0 %
5.5 %


Late 70s
5.0 %
7.0 %


80s+
6.0 %
8.0 %


Withdrawal rates can include the withdrawal of principal. If preservation of principal is a high priority, you will likely need to use a lower withdrawal rate. In general, the higher your withdrawal rate, the greater the risk that your money may not last throughout your time horizon. These are based on estimates and assume a 3% annual inflation rate, a diversified portfolio 50% equities, 50% income and a life expectancy to at least age 90.
But a successful withdrawal strategy in retirement doesn't just mean sticking to a certain percentage. You'll probably need to make adjustments over time as your goals and income needs change, and that is where yourEdward Jones financial advisorcan help tailor this guidance to your situation.
Struggling for income? Steps to consider
If your retirement goals don't exactly align with what your investments can support, your Edward Jones financial advisor can help you determine if you need to make some adjustments, including cutting expenses, working part-time, or delaying retirement.
These adjustments may have other benefits, too. For example, delaying retirement may allow your investments to continue to grow and could increase your Social Security benefits. Other options, such as immediate annuities, might help increase your cash flow and provide a floor for your income. Be flexible over time Market performance can be unpredictable, but you can prepare for it. Starting out with a modest withdrawal rate can provide you the flexibility to better handle market declines and unexpected expenses, should they occur. But you may still need to make adjustments along the way to keep you on track during a market decline, such as: Determining where you can cut back on spending Not taking an annual raise (not automatically taking more from your investments each year for inflation)

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Edward Jones - Chad Choate, AAMS

Financial Advisor 828 3rd Ave. W., Bradenton, Florida, 34205

Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.