In an ever-changing economic context, retirees continue to face a crucial question: what amount can be sustainably withdrawn from their portfolio?
Karine Turcotte, portfolio manager and partner, and Tania Strebel, associate portfolio manager at Medici, answer this question in a new video.
According to a recent Morningstar study, the long-term sustainable withdrawal rate would be around 4%. This percentage exceeds expectations, especially in the current economic climate. In fact, three years ago, the suggested norm for a new retiree with a million-dollar portfolio was 3.3%—an annual withdrawal of $33,000, adjusted for inflation.
As Tania and Karine point out, this 4% rule remains a general guideline. It cannot replace a personalized analysis. Taking into account taxation, other assets, annuities, and personal projects, each case requires customized withdrawal strategy.
Watch our experts’ explanations on YouTube (in French).
