Investing articles can be long and boring.  How about I read the article and provide you with the important information for DIY investing success.

Here it is.

If you have the misfortune of retiring when the stock market peaks and you see a big decline in your first few years of retirement, the safest way to ensure your money doesn’t run out before you die is to reduce your withdrawals to 3% of your total portfolio value.  So if you have saved $500,000, you withdraw $15,000 to spend this year.  Keep doing the same thing every year growing only for inflation each year.  You will continue to collect and spend your CPP and OAS and any other work or government pension you are entitled to.

Turns out the 3% withdrawal rate is fairly bulletproof to last for your entire life.

Click below to read the full article (you must have a Globe and Mail subscription)

“If you’re nervous about how long your money will last in retirement, you might adopt a withdrawal rate near 3 per cent to include a margin of safety while sticking with low-fee funds. Similarly, being able to tighten one’s belt in hard times or having a part-time job can really help portfolio longevity.”

Larry C.

I’m a department head for a high school in Toronto. I graduated from the Ivey School of Business at Western University and have been a DIY investor for over 20 years.