New retirees might enter a different environment than their predecessors-the economy or market might have changed slightly or dramatically.
Morningstar researchers have investigated and identified their latest starting safe withdrawal rate. Hint: it’s slightly lower than last year.
Here to discuss this research is Amy Arnott, a portfolio strategist with Morningstar. The interview has been edited for length and clarity.
A: The goal was to estimate how much you can safely withdraw from your portfolio during retirement.
This is one of the most difficult questions that people will face during their financial lives. When you’re saving for retirement, it’s pretty straightforward as long as you start early and you’re consistent. But when it comes to your retirement portfolio and figuring out how to turn it into a paycheck for yourself, that gets more complicated.
There’s the danger of running out of money during retirement, but on the other hand, a