
How are You Planning for Retirement? Retirement preparation is about planning and adhering to the plan, which includes both saving and investing. Many plan from the start to live on withdrawing 4% of their investable assets per year in retirement, which fluctuates as time goes on, according to the value of their account. This relatively small withdrawal rate can help insulate them from market declines because they know that amount is just 1/20th to 1/25th of their portfolio. As an investor, if you can accept fluctuations in the value of your account and understand that markets are priced to get a greater return on capital than bonds or cash, then you will feel comfortable staying in. The key is to keep investing and adhering to your plan during all kinds of markets. The important thing is to focus on what you can control. It doesn’t really matter what the markets are doing when you have a plan and adhere to it. If you spend 4% a year and the global equities decline, it ...