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How To Tap A Nest Egg

Thursday, July 19, 2012 - 6:32 AM
According to a recent WSJ article, one of the most popular strategies for withdrawing retirement savings, commonly known as the "4% solution", is often the least efficient.  Here's the best one, according to Morningstar researchers. 
pearlbrownpearlbrown1,465 posts since
Nov 2, 2010
Rep Points: 6,374
1. Thursday, July 19, 2012 - 10:22 AM
In these days of low CD rates, for CD holders, these theories can't work anymore.  I think my theory works best.  Get the best income you can from your CDs and learn to change your style of living so that you can live on whatever is coming in.  If emergencies hit, then one can dip into principal of whatever CD is maturing or try to save some of your Required Minimum Distribution for emergencies.  This works for me so far.  Who knows what to expect in the future?
paoli2paoli21,398 posts since
Aug 10, 2011
Rep Points: 6,128
2. Thursday, July 19, 2012 - 11:05 AM
It is remarkable that everyone has a solution until it no longer works. I think that Paoli2 has it right. My husband has been on disability for 18 years and is in Hospice now. We have used CD's mostly (80%) since 1978  and exclusively since 1999. We are fine and will always be OK. Have never used principal and lived mostly on SS and my part-time salary until I had to retire to care for him full time.
Ally6770Ally6770930 posts since
Jan 16, 2010
Rep Points: 2,706