Part 6/8:
The flexibility this system offers is substantial. Those with a million-dollar portfolio can potentially withdraw larger amounts initially while still maintaining a cushion for future years. Retirees need to be adaptable within this framework, potentially adjusting withdrawals as necessary to accommodate market fluctuations.
It is important to be mindful of how the interplay of asset class performance might impact overall strategies. There’s a notable difference worth recognizing: this approach allows for a substantial withdrawal upfront before tapering off in conjunction with market performance.