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If you ask most financial advisors how to retire with half a million dollars, they will probably answer that this is not possible.
Many financial advisers refer to the "4% rule" (also the "Bengen rule") for tax-efficient accounts such as the 401 (k) and IRA accounts. The 4% rule states that you can draw up to 4% of the value of your nest egg during your first year of retirement, and then add inflation to the previous year's total and withdraw each subsequent year, for 30 years, without fearing that your money will run out. . William Bengen, who proposed the rule for the first time in 1994, then updated this figure to 4.5%.
At 2018 data, the median personal income in the United States is $ 33,706 per year. Not counting Social Security, you would need about $ 750,000 in your retirement account (s) to reach that number, if you stick to this rule. Depending on where you live and the lifestyle you want to keep, you may need to start with more. This is the reason why many advisers indicate even higher, indicating ideal retirement goals of between $ 1 million and $ 1.5 million.
Brent Weiss, head of planning at Facet Wealth in Baltimore, reminds us that there is no single retirement solution. "In retirement, we face a unique set of risks and many of them are unknown," he said. "From inflation to health costs through longevity, we need to have a plan for them today." Among these problems, there is the fact that not all families have not spared as much as they needed. It's good. If you are wondering how to retire with less than traditional wisdom tells you, you have a few options.
These seven high yield investments can help you retire with a nest egg as small as $ 500,000. Another aspect of the 4% rule is that any dividend or bond interest you receive decreases the amount you have to withdraw for your annual income.
These seven investments are expected to provide more, in the form of dividends and distributions, than the median personal income of the United States.
Click on the slideshow to see them.
SEE ALSO: 25 actions each retiree should have
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