The old “4% Rule” for retirement … it’s gone!

The old 4% rule over simplified what really happens during retirement … what’s that? You age! Aging has a dramatic effect on what draw down rate you may use … in fact, besides market returns sequences* (good or bad), time is the second most important factor in retirement.

My article below, based on our latest research (referenced in the article) demonstrates that the 4% rule really only applies to early retirement years (60 and younger – but younger is actually less than 4% since there is more time required for draw downs from a portfolio – and that’s another future possible article).

This article discusses normal draw down rates for various ages from 60 to 100.

*How markets are dealt with is the subject of my next article.

Article is posted at Morningstar and AdviceIQ.

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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