The article explains the 4% rule as a starting point for retirement planning: retirees withdraw 4% of their portfolio in the first year and adjust that amount for inflation later. For example, spending $50,000 a year implies needing roughly a $1.25 million portfolio. It also advises considering taxes when choosing accounts, since taxable brokerage withdrawals face annual taxes, traditional retirement account withdrawals are taxed as ordinary income, and Roth withdrawals are generally tax-free, and spreading traditional withdrawals over several years can help avoid higher tax brackets. Required minimum distributions start at age 73 for traditional accounts, while Roth and taxable brokerage accounts have none. It also notes that rising inflation may require larger withdrawals, and recommends online tools or financial planners for long-term planning.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on aol.com ↗
Related news
- Raising taxes on investments, estates and benefits could keep Social Security from running out of money. Here’s who could pay the most.
- The Eight Years Between Retiring at 62 and Claiming Social Security at 70 Are the Lowest Tax Bracket Most Retirees Will Ever See. A Couple Spending $60,000 Can Convert About $70,000 a Year to a Roth at 12% and Never Pay 22% on It Again
Many new retirees live off savings from age 62 and wait until 70 to claim Social Security, filing with very little taxable income even though these years offer the lowest tax brackets they will see. For a married couple filing jointly in 2026, income taxed at 12% extends to $100,800, so a couple spending $60,000 could convert about $70,000 a year to a Roth, moving $560,000 over eight years and saving $56,000 compared with paying 22% later. Waiting until 70 can backfire, as Social Security plus required minimum distributions can make up to 85% of benefits taxable, pushing a 22%-bracket couple's effective marginal rate to 40.7%. Converting before 65 can also cost ACA premium subsidies, Medicare premiums are based on income from two years earlier, and taxes withheld from a conversion never reach the Roth.
- 7 Things Veterans and Military Retirees Should Know About 3 . 6 % COLA for 2027
- Semiconductors are out , software is in . Why that not about to change
Software stocks have recovered from the 'SaaSpocalypse' sell-off earlier this year, as money rotates out of semiconductors into AI applications and infrastructure software. Workday, which fell about 40% in the first quarter, surged more than 55% in the third quarter, while over the past three months the IGV software ETF gained more than 13% and the SOXX semiconductor ETF fell more than 4% and was down for eight straight sessions. Wells Fargo's Ohsung Kwon said 2027 could see AI applications outperform the AI build-out, though he expects AI spending to peak in 2027 and warned of a possible 5% to 10% market drawdown by year-end. Bank of America's Tal Liani argued that companies owning the platforms where work happens, such as Microsoft and ServiceNow, are positioned to benefit as AI changes how users interact with software.
- Norway's $2 trillion wealth fund was frozen out of major defense companies. That may be about to change
Norway's sovereign oil fund, worth about 21.8 trillion Norwegian kroner ($2.3 trillion), could soon invest in Western defense companies after years of being largely shut out under state ethics guidelines. An independent committee led by Gjedrem has recommended a major shift: keep the nuclear weapons exclusion but narrow it, which would allow reinclusion of several European and American makers of nuclear-weapon components, and permit investment in firms making weapons Norway needs for its own defense. It also proposed dropping the requirement to assess whether arms makers' products are used in line with international humanitarian law. The committee said reassessing the framework was timely given geopolitical instability and the fund's greater influence, but warned that retaliation could hit the fund and Norwegian interests. It recommended the Council on Ethics continue operating but no longer advise the fund on taking action over ethical concerns.
Related markets
Latest news
- Winning over Vingroup and Sun Group with concrete and special materials: Vietnamese company's profit up 136%, chairman speaks out
Song Da Cao Cuong (SCL) reported Q3/2026 profit of VND 38 billion, up 136%, on net revenue of over VND 263 billion (up nearly 98%), while gross profit margin rose from about 36% to 41%. For the first nine months, revenue reached nearly VND 666 billion (up 81%) and after-tax profit nearly VND 94 billion, already exceeding more than 110% of its full-year profit target. Chairman Kieu Van Mat attributed the results to technology upgrades, production line optimization and capacity expansion, with several new plants expected to start operations by November 2026. The company said it spent more than two years testing its products before Vingroup accepted them; Vingroup's share of its business has fallen to about 25% as customers expanded to around 10 major groups and exports began to Laos, Cambodia and the Philippines. Over the past two years, the company has invested about VND 1,000 billion in factories and technology.
- Coteccons Chairman Bolat Duisenov reveals new direction: expanding home construction for individual customers
At the annual general meeting on October 20, Coteccons (HoSE: CTD) set fiscal 2027 targets of VND 42,000 billion in revenue and VND 1,050 billion in after-tax profit, and said it is considering expanding into residential construction for individual customers (B2C). In fiscal 2026, net revenue reached VND 34,340 billion (up 38%, 115% of plan) and after-tax profit VND 788 billion (up 73%); new contract wins totaled VND 60,307 billion and backlog was about VND 70,000 billion. In the first quarter of the new fiscal year, the company booked revenue of VND 11,270 billion and profit of VND 306 billion, but new contract value of VND 14,519 billion was lower than a year earlier; the company said it is tightening criteria for selecting clients and projects. Coteccons is also working with Microsoft, is expected to become a strategic partner of Workday, and targets raising its ROE from 10% to 15-18% by 2030.
- UPS Yields 6.7% After Firing Amazon. Here's Whether the Dividend Survives 2027.
UPS shares yield 6.7% as of October 16. The company has moved away from high-volume, low-margin Amazon deliveries and froze its dividend earlier this year, ending a 16-year streak of increases. The article says the payout will likely remain frozen through 2026 and 2027, citing competition from 10- and 30-year Treasury yields above 5% and other industrial dividend payers, but calls the dividend's safety questionable: UPS generated $5.47 billion in free cash flow in 2025, with $5.4 billion going to dividends, and free cash flow is projected to fall to $5.05 billion in 2026 and $5.01 billion in 2027, with the dividend absorbing about 98% of 2026 free cash flow. Rising competition and high fuel prices add pressure, and the article suggests investors may find more safety in the industrial sector.
- Asian shares mostly decline after AI stocks lead a rebound on Wall Street
Asian shares mostly fell in cautious trading on Tuesday after AI-related stocks rebounded on Wall Street, while other sectors stayed shaky and oil prices stayed high. Japan's Nikkei 225 slipped 0.6% to 64,512.35 in early trading, South Korea's Kospi dropped 2.8%, and Australia's S&P/ASX 200 lost 0.8%. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq gained 1.1%, helped by Nvidia's 1.4% gain, while most stocks outside AI and tech fell and the Dow slipped 0.1%. The 10-year Treasury yield climbed to 5.14%, and U.S. crude rose to $103.50 a barrel and Brent to $109.47, as uncertainty about when the energy industry will return to normal after the war with Iran means oil is unlikely to ease soon.
- Asian shares mostly decline after AI stocks lead a rebound on Wall Street
Asian shares mostly fell in cautious trading Tuesday after AI-related stocks rebounded on Wall Street, while other sectors stayed shaky and oil prices remained high. Japan's Nikkei 225 slipped 0.6% to 64,512.35, Australia's S&P/ASX 200 lost 0.8% to 8,772.10, and South Korea's Kospi dropped 2.8% to 5,605.31. On Wall Street, the S&P 500 rose 0.4% and the Nasdaq rallied 1.1%, helped by Nvidia, while the Dow fell 0.1%. The 10-year Treasury yield climbed to 5.14%, and U.S. crude rose 0.15% to $103.50 a barrel as uncertainty over the war with Iran kept oil prices elevated.
- What Could X-Energy (XE) Gain From Its 960MW Indiana Nuclear Project?
X-Energy (NasdaqGS:XE), American Electric Power and Amazon agreed to assess a 960 MW advanced nuclear project in Indiana using Xe-100 reactors, on a former coal plant site. Under the joint development agreement, Amazon would provide development funding and commit to a long-term power purchase. The article says the deal offers commercial validation for X-Energy's reactor platform rather than immediate financial relief, as the company, with a $4.3b market cap, reported $150.28 million in revenue, a $448.87 million loss, and a 20.2x price-to-sales ratio. The next key milestone is whether the study reaches a final investment decision for the Sullivan County site.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.