Motley Fool Urges 4% Withdrawal Rule for $500,000 Retirement Savings

4 articles · Updated · The Motley Fool · May 27

$500,000 in retirement savings can outlast retirement if withdrawals are planned around portfolio mix rather than taken ad hoc, with a 4% rule cited for balanced stock-bond holdings.
A bond-heavy portfolio may call for withdrawals closer to 3%, while stock-heavier allocations can potentially support a higher rate.
Supplemental income can reduce pressure on savings, including part-time work or delaying Social Security, which raises benefits 8% for each year claimed after full retirement age until 70.
Market downturns are a key risk point: cutting discretionary spending during declines can avoid selling assets at a loss and give portfolios more time to recover.
The advice comes as $500,000 still exceeds the $200,000 median retirement savings for Americans ages 65 to 74, according to 2022 Federal Reserve data.

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