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Article questioning the 4% withdrawal rate for retirees
Old 06-21-2012, 04:40 PM   #1
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Article questioning the 4% withdrawal rate for retirees
I felt the article brought up a few good points - 1st how the 4% does not predict the unexpected and how it could make you live to frugally - all depending upon how retirement unfolds and how markets perform...

'Does the 4% Rule for Retirement Withdrawals Make Sense?' - Yahoo! Finance

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Old 06-21-2012, 07:39 PM   #2
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yawn!

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Old 06-21-2012, 07:44 PM   #3
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Originally Posted by walkinwood View Post
yawn!
Sorry, I guess that is the consensus with the article. I will be more selective in the future...
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Old 06-21-2012, 07:50 PM   #4
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Originally Posted by Semiretired2008 View Post
Sorry, I guess that is the consensus with the article. I will be more selective in the future...
IMO, it's not that it's the consensus per se. It's that there's been a couple of articles per month for the last 2-3 years making that case.

4% may still survive the recent doldrums; it remains to be seen. But right now, give the rampant pessimism out there, these writers have to do something to get readers.
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Old 06-21-2012, 07:59 PM   #5
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IMO, it's not that it's the consensus per se. It's that there's been a couple of articles per month for the last 2-3 years making that case.

4% may still survive the recent doldrums; it remains to be seen. But right now, give the rampant pessimism out there, these writers have to do something to get readers.
I had seen articles along that line before - just not stated the way this article discussed it. I guess since I do not use the 4% rule I do not follow these types of articles much...
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Old 06-21-2012, 08:32 PM   #6
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Bottom line: No spending system can accommodate all the twists and turns you'll experience in retirement. But if you think of the 4% rule as a guideline and stand ready to adjust your spending and withdrawals to changing conditions, you should be able to handle those unexpected events and still enjoy retirement.
It's a fair summary, but I'm enjoying the research that Wade Pfau is doing on improving the analysis. For example,

Retirement Researcher Blog: Updated Situation for 2000 Retirees

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