Retiring With $2 Million? Here's How That Could Get Whittled Down to $0.

A $2 million retirement portfolio may not last indefinitely, particularly if early losses force higher effective withdrawal rates, according to the analysis. The article explains how a common 4% rule—using $80,000 per year from a $2 million portfolio—can become problematic when markets fall early. It gives an example where a 30% market drop in the first year reduces the portfolio from $2 million to $1.4 million; taking the planned $80,000 withdrawal then equals about a 5.7% rate of the remaining balance. If markets take a long time to recover and withdrawals continue at inflation-adjusted levels, the effective withdrawal rate could rise further, potentially reaching 6%, 7% or more. The piece argues that flexibility matters, suggesting temporary reductions in discretionary spending during downturns could help preserve retirement funds over decades.