Hi gang,
New poster here. I'm a 52 year old semi-retired financial advisor and I have really enjoyed "lurking" here and reading all of your thoughts/advice while I prepare for my own eventual total retirement.
But I do have one thing I'd like to share.....
As a financial advisor, one of my biggest challenges comes in helping my clients with the all-important question, "how much money do I need to retire?"
For years now, I have stuck pretty much to the tried-and-true "withdraw 4% and adjust for inflation" school of thought. But many times this advice did not really help my clients with their dreams. Either they were desperate to retire NOW, or the 4% was just not enough to allow them to retire comfortably.
So I started looking for alternatives and found something that I think you should be aware of. It is NOT the perfect solution for everyone, but I think it does provide a sound alternative that allows for initial withdrawal rates OF UP TO 6.2% PER YEAR.
I have tried this strategy with a couple of my clients with good success so far. As I said above, it is not for everyone because you must be very disciplined in following a couple of very specific rules in diversifying your portfolio and in making your withdrawals..... And not everyone will have that discipline.
But for those who do (and for those whom a 4% withdrawal rate just won't cut it)....it just might be a way to GET OUT EARLY.
Again, this is not a "fix for everyone" (and I have no business relationship with the creator of this plan, Jonathan Guyton....I've never even met him) but I do think it is something that could potentially help many people in their quest for early financial freedom.
Here's how to find his study (from the Financial Planning Journal, Oct 2004 issue)
Go to
www.fpanet.org/journal/articles
Click on past issues
Go to October 2004
Scroll down to "Decision rules and portfolio management for retirees: Is the safe initial withdrawal rate TOO safe?" by Jonathan Guyton
His article is kind of technical, but give it a read and then tell me what you think. (It is NOT an exact duplicate of the conditions normally associated with the "4%" research. But I think his strategy has merit as an alternative.)
Side Note -- Hope to hear from you, but please actually READ the article first....I've noticed that some posters on this Board don't seem do that. They just start spouting off without doing the research
So thanks for allowing me this (somewhat lengthy) posting. This is a great Board that performs a vital service helping us all get ready for the "next chapter" in our lives.
Have a great week!
TKP
Threaded Mode
