Balancing Security and Living Fully in Retirement

One of the most common questions I hear is: "How much can I safely withdraw from my retirement portfolio each year?"

The answer matters more than you might think. Withdraw too little—say, 2% or 3%—and you're sacrificing your present life for a future you may not fully enjoy. Withdraw too much—7% or more—and you risk running out of money when you need it most.

The sweet spot? For most retirees, it's between 4% and 5%.

Here's what that looks like in practice: If you have a $1,000,000 portfolio, withdrawing $50,000 annually puts you right at 5%—a rate that historically balances enjoying your retirement with maintaining your financial security over the long term.

Of course, everyone's situation is unique. Your ideal rate depends on your age, spending needs, risk tolerance, and how your portfolio is invested. But understanding this framework gives you a starting point for conversations with your advisor—and peace of mind that you're neither depriving yourself today nor jeopardizing your tomorrow.

The goal isn't perfection. It's finding the balance that lets you live fully, now and in the years ahead.