Industry simulations coming out recently conclude that sustainable withdrawal rates when your money is invested in the market range from 2-4% depending on how your money is invested.
Why so low? 3 reasons –
How can you take higher withdrawal rates?
Incorporating insurance in addition to investments means you can take advantage of actuarial science, which offers more predictability as to how long the money needs to last. Whether you graduate from the planet before life expectancy or you live to be 100, actuarial science can change how much you can safely spend.
If you plan today – incorporating both investments and permanent insurance – you may be able to increase your withdrawal rates.