Core Insights - The article emphasizes the importance of prudent planning for retirement, particularly for individuals with $1.4 million in their IRA at age 65, to ensure financial sustainability over a potential 25-year retirement period [2][4]. Retirement Funding Primer - A safe withdrawal rate, such as the 4% rule, is suggested to help savings last throughout retirement, allowing for annual withdrawals of approximately 4% of total savings in the first year, adjusted for inflation in subsequent years [3][4]. - For instance, retiring with $1.4 million would allow for an initial withdrawal of $56,000, with adjustments for inflation leading to a withdrawal of $57,400 the following year, assuming a 2.5% inflation rate [4]. Critique of Withdrawal Strategies - While the 4% rule is widely referenced, critics argue it is overly simplistic and may not fit all individual circumstances, highlighting the need for a tailored approach to withdrawal rates, investment returns, taxes, inflation, and life expectancy [5]. Assessing Personal Financial Situations - A thorough assessment of personal financial situations and retirement lifestyle goals is crucial for ensuring that the $1.4 million IRA meets long-term needs [7]. - Key questions to consider include estimates of basic and discretionary spending, potential large outlays, other income sources, risk tolerance, estate planning, and the impact of required minimum distributions (RMDs) and taxes [10]. Forecasting Retirement Needs - Budgeting for expected living expenses and accounting for additional income sources such as Social Security, pensions, annuities, part-time work, and investment interest can supplement IRA withdrawals [9].