$1M retirement withdrawal at 4%
Answer
From a $1,000,000 portfolio at a 4% withdrawal rate: about $40,000/year or $3,333/month in year one — before taxes and fees. Educational estimate, not financial advice.
Assumptions
- $1,000,000 starting balance
- 4% withdrawal rate in year one
- Future years typically adjust for inflation under the classic rule
- Excludes taxes, fees, and Social Security
Calculation
Year 1: $1,000,000 × 4% = $40,000Monthly: $40,000 ÷ 12 ≈ $3,333.33Try the full calculator
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Frequently asked
Will $40k/year cover retirement?
It depends on your location, lifestyle, and other income (Social Security, pensions). Many people pair it with additional income streams.
What about taxes?
Withdrawals from traditional 401(k)/IRA are taxed as income. Roth withdrawals are tax-free if qualified.
Is this guaranteed for 30 years?
No — it's a historical heuristic. Sequence-of-returns risk and inflation can change outcomes.
Estimates only. Figures are before taxes and deductions unless noted.