Part 5/8:
The structured withdrawal process lends itself to significant outcomes. 89.2% of the time, retirees using this methodology have funds remaining upon their passing, with an average portfolio balance of $1.2 million at the end of the 25-year horizon. This is a stark contrast to traditional advice that often suggests withdrawing a much lower initial amount annually (often around $40,000) that could lead to less money available later in retirement.
One could also examine the average withdrawals over this period, which can turn out to be $55,000 in the later years versus withdrawal limits set by the traditional 4% rule, which can restrict a retiree’s access to larger sums in their earlier years of retirement.