You're listening to Ramsey Everyday Millionaires, where we talk retirement, building wealth,

and outrageous generosity.

Today's question comes from Steve and Oklahoma.

He asks, I'm 72 years old and my wife is 70.

We're both in good health.

We have a combined retirement and social security income of about 140,000 a year.

We own our home outright and have no debt.

We have about $100,000 in Roth and 1 million in traditional IRAs.

Are wonderful, I know.

What do you think, Steve?

Our wonderful financial advisor is recommending a distribution of no more than 4%.

We're looking at about 5% to enable us to travel while we're able to.

What is your recommendation on the maximum annual distribution?

It's a great question.

And they're in a good spot.

And so this makes me feel better about saying, sure, 40,000 versus 50,000 on the distribution

is what they're really asking, right?

On, let's say, the million dollars in traditional IRAs that's going to be taxable.

This doesn't feel like a big portion of the world if they've got the 140,000 income.

So if the money is invested in good mutual funds and it's making average market returns

of 11%, 12%.

Why can you only take out 4%?

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