Seems like a simple enough question. But, alas, the devil is usually in the details. What details, you say? Well, details such as:

• How long are you going to live for?

• How much will you have saved for retirement?

• What will be your rate of return for you investment portfolio before and during retirement?

• What will be the rate of inflation over the next 20 years?

I know, I know. None of us are Carnac the Magnificent (a small nod to Johnny Carson) and we don’t possess the ability to divine the future (nor did Johnny, really, if you ever watched his show). But, in order to truly plan for the future, one needs to take the above into consideration and actively adjust their financial plan as the market’s fluid-like conditions are served up. This is where an hourly consultation with a financial planner can really help, At Intelligent Investing, we answer these questions everyday as fee only or hourly financial advisors (www.mynmfp.com/take-action/).

Short of factoring in the above virtual unknowns, one can also try the following (each having their respective pluses and minuses):

• Withdrawal 4% a year from your portfolio adjusting for inflation thereafter;

• Utilize IRS Required Minimum Distribution tables; however, these tables don’t allow for a 4% withdrawal rate until age 73; or

• Employ the dumbbell approach wherein one withdrawals at a higher rate during the early and late stages of retirement, then for the majority of the middle years they cut back.

None of us can actively divine the future, but a little annual planning can get you pretty close. For additional information, please click on the title above.