Retirement Investing

Withdrawal Rate

Definition

What is Withdrawal Rate?

Annual portfolio withdrawals divided by the portfolio's starting or current value.

Example in practice

Withdrawing ₦4 million from ₦100 million is a 4% rate.

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An estimated withdrawal rate intended to support spending over a long retirement under stated assumptions.

The risk that poor returns early in a withdrawal period cause lasting portfolio damage.

An account or arrangement designed to accumulate and invest money for retirement.

The property, investments, rights, and obligations left by a person at death.

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