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| Wealth Preservation |
According to Patricia M Stewart, head of the Investment Advisory Group at JPMorgan Private Bank's Wealth Advice Lab, a spending rate of 3% to 4% is likely to preserve wealth. It is assumed that an equity compound return of 7% to 8% in the next 7 to 15 years is reasonable. Let's say you have a portfolio worth $500,000, you withdraw 3% ($15,000) and you receive a return of 7% ($35,000) you still end up with $20,000 extra. The extra amount allows your wealth to grow with inflation factoring in.
Image source: https://easiwealth.com.my/wealth-preservation/
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