How long will $400,000 last in retirement?

Additionally, retirees can further enhance their financial security by diversifying their investments and regularly reviewing their portfolio's performance. This can help to mitigate risks and ensure that the retirement funds continue to grow and provide a steady income stream.

Retirees often face the challenge of managing their retirement funds effectively to ensure financial stability for the long term. One commonly used strategy is the 4% withdrawal rate, which is a guideline for safely withdrawing from a retirement portfolio.

With a portfolio of $400,000 and adhering to the 4% withdrawal rate, an individual can withdraw $16,000 annually from their retirement accounts. This amount is considered sustainable, as it allows the portfolio to grow and maintain its value over time, even when considering inflation and market fluctuations.

When factoring in additional income sources, such as Social Security checks, retirees can enjoy a comfortable retirement. For instance, if a retiree receives $2,000 monthly from Social Security, this would add up to an annual income of $24,000.

Combining the annual withdrawal from the retirement portfolio with the Social Security income, the retiree would have a total annual income of $40,000. This amount is considered a substantial income that can support a comfortable lifestyle during retirement.