When people come into my office here at Manna Wealth Management, one of the first questions they ask me is:

“David, how much can I safely take out of my retirement accounts each year without running out of money?”

It’s a fair question. You’ve worked hard, saved diligently, and now retirement is here—or at least right around the corner. The last thing you want is to worry about running out of money in your 70s, 80s, or even 90s.

So, let’s walk through this together. I’ll keep it simple, use real-world examples, and give you a framework you can actually use.

The Famous “4% Rule” — And Why It Matters

You may have heard about something called the 4% Rule. Here’s how it works:

• You add up all your retirement savings (IRAs, 401(k)s, brokerage accounts).
• You take 4% of that balance in the first year of retirement.
• Each year after that, you adjust for inflation.

For example:

• Let’s say you’ve saved $1,000,000.
• 4% of that is $40,000 in your first year.
• Next year, if inflation is 3%, you’d take about $41,200.

The idea is that this strategy should give your money a strong chance of lasting 30 years or more.

But—and this is important—the 4% rule is just a guideline. It’s based on historical averages, and life doesn’t always play by the averages.

Why the “Safe Withdrawal Rate” Isn’t the Same for Everyone

Here’s where it gets personal. The right number for you depends on a few key things:

1. Your Lifestyle
   • Do you plan to travel every year, or are you more comfortable staying local?
   • Are you planning to buy a vacation home, or is downsizing the plan?
2. Your Health
   • If you have a family history of longevity, we may need to plan for a 35+ year retirement.
   • If health issues are more pressing, priorities and spending needs shift.
3. Your Investment Mix
   • A portfolio that’s all in cash will run out quicker.
   • A balanced portfolio of stocks and bonds gives you a better chance of keeping up with inflation.
4. Market Conditions
   • Retiring during a bull market feels very different than retiring during a recession.
   • The first few years matter the most (what we call “sequence of returns risk”).

Real-Life Example

I worked with a couple here in Florida (let’s call them John and Mary). They had saved about $800,000 for retirement.

John’s biggest concern was travel—they wanted to see Europe every other year. Mary, on the other hand, was more concerned with rising healthcare costs.

After looking at their numbers, we set up a plan where they withdrew around 3.8% per year, not a flat 4%. That gave them a little extra cushion. We also carved out a separate healthcare fund, so they weren’t dipping into their main savings every time a medical bill popped up.

This gave them peace of mind—they could enjoy life and feel confident their money wouldn’t run dry.

Rules of Thumb You Can Use

• 3%–4% Withdrawal Rate = Conservative/Safe
• 5%–6% = Aggressive/High Risk of Running Out
• If you’re nervous, start lower. You can always adjust upward.

And remember: retirement planning isn’t just about math. It’s also about flexibility. Some years you may spend more (hello, dream vacation!), and some years less. That’s perfectly fine, as long as we keep an eye on the bigger picture.

How I Help My Clients Answer This Question

When clients ask me about safe withdrawal rates, I don’t just give them a number. Together, we run scenarios:

• What happens if inflation spikes?
• What if the market drops 20% in the first three years?
• What if you live to 100?

The goal isn’t to predict the future—it’s to prepare for it.

At Manna Wealth Management, we use retirement planning tools to run these simulations, so clients can see the possible outcomes before making big decisions.

The Bottom Line

There isn’t a one-size-fits-all answer to “How much can I safely withdraw each year?” But here’s what I tell my clients:

• Start with the 4% rule as a baseline.
• Adjust based on your lifestyle, health, and goals.
• Stay flexible—life changes, markets change, and your plan should evolve too.

If you’re feeling unsure, don’t try to figure this out alone. That’s what I’m here for.

You can always contact me directly to talk about your retirement income strategy. And if you’d like to know a little more about me before we chat, here’s my story: David Kassir.