Set your payouts
The question of the ideal payout amount is not so easy to answer. On the one hand, this is due to the fact that developments on the stock market are difficult to predict. In addition, as an investor, you decide for yourself how high your additional income should be.
It is advisable to proceed pragmatically and calculate carefully over a longer period of time – so that there is still sufficient capital after the calculation period has expired. The so-called “Four Percent Rule” could help here. This is a payment value calculated by scientists that, with an annual withdrawal of four percent of the initial amount, has a high probability of being sufficient for at least 30 years.
How realistic the four percent rule is for future payouts is difficult to predict. As an investor, you should tend to stay below this number to be on the safe side.
Tip: The four percent rule also works the other way around. If you want to know how much you need to save in order to be able to pay out your desired amount each year, simply multiply the desired payment by 25.