A Reddit user in his late 20s is set to inherit about $1 million and is contemplating withdrawing $50K annually at a 5% rate. However, experts caution that this approach could jeopardize his long-term financial security as a sustainable withdrawal rate is around 3.7%. The community emphasizes the importance of investing the funds rather than drawing from them to ensure a stable future, particularly since he is just beginning his career and has many years of possible income ahead.
Experts now recommend a 3.7% withdrawal rate, and that's to give you a good chance of making your money last for 30 years.
The absolute worst thing that the original poster could do would be to just start living off the money - especially at a 5% withdrawal rate.
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