Planning for your retirement should be as easy as it can be. If you can build a portfolio to grow with a combination of stocks and bonds, it’s important to build one that will work for you. If you don’t know what to put in it or where and how to invest, ask an expert for financial help.

A good portfolio should be designed to achieve a generous long-term rate of return. Hopefully this allows for a decent withdrawal amount each year, about 4-7%. You will want this to be flexible to allow for emergencies and inflation rates.

If you plan correctly and start your portfolio at a decent time of life, you can hope for a total return, assuming you allow for a 10 to 20 year average annual return the equals or exceeds your withdrawal rate. Of course, you will need to maintain the steady allocation of investment every year regardless of the up and down of the portfolio.

Withdrawing from your portfolio is important. You don’t want to take anything out too soon, take out too much or take out too little.

Your withdrawal rate needs to take into account many factors, including allocation of your asset, expected rate of inflation, rate of return, yearly income targets, future investments, and comfort with uncertainty. The more is your withdrawal rate, the more you’ll have to plan to ensure its sustainability over the long term.

However, in the end there isn’t any standard rule of thumb; every individual has different retirement plans, means,  circumstances and goals that come into play.

Creating income from your portfolio needs planning and a healthy dose of reality. You need to look at how much you think you will need to live on each month, factoring in emergencies, how long you may live after retirement and the lifestyle you may be used to and will you be able to maintain that.

Putting money and investments in and a respectable withdrawal plan that doesn’t eat into the principal or leave it wanting is a tricky balance to achieve. You can get more expert advice and help understanding it all, plus stock mutual funds are buying at

There is no guarantee of our future, of investment but it’s reasonable to expect about $25,000 on a $500,000 portfolio. That is, of course, annual returns of seven or eight percent and no more than five percent of withdrawal. Interests rates, stock markets, other investment plans all can play a part in this being variable. Retirement funds form the company dissolving or untold emergencies can factor in, as well.

Investing in a solid portfolio is investing in your future. If you don’t have the means build up a decent portfolio you may need to look at other options. Perhaps you are relying on inheritance money and don’t need or have the time to build one up.



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