Core Insights - Morningstar recommends a starting withdrawal rate of 3.9% for retirees, adjusting for inflation annually, to ensure a sustainable retirement income [1][2][7] Withdrawal Strategy - A 3.9% withdrawal rate has a 90% success probability over a 30-year retirement, assuming a portfolio of 30% to 50% stocks and the rest in bonds and cash [2][7] - For a retiree with $1 million, the first-year withdrawal would be $39,000, increasing to $39,959 in the second year with a 2.46% inflation rate [2][3] Considerations for Retirement Planning - Factors such as taxes, investment fees, and Social Security timing should be considered alongside the withdrawal strategy [3][4] - Roth IRAs allow tax-free withdrawals of investment earnings, contrasting with traditional 401(k)s, which incur ordinary income tax on withdrawals [5][4] Social Security and Retirement Income - Delaying Social Security until age 70 can significantly enhance lifetime retirement income, especially when combined with the 3.9% withdrawal strategy [6][7] - Strategies to bridge the gap between ages 67 and 70 include creating a TIPS ladder, forgoing inflation adjustments during market downturns, or temporarily reducing retirement spending [8][7]