explanade
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The 4% spending rule, 20 years later | Vanguard Blog
Conclusions:
Conclusions:
Here’s how I suggest retirees approach the 4% spending rule of thumb. First, maintain the perspective that this type of analysis should only be used as a modeling tool to help gauge portfolio durability simulations, assuming you maintain a balanced and diversified portfolio Second, portfolio management costs will be a “drag” on your spending, so it’s important to minimize investment costs and follow a tax-efficient portfolio spending approach. Third, embrace a dynamic spending strategy that considers market performance and allows for flexibility on an annual basis. Certainly, these three principles are general in nature, but they can give future retirees a nice tailwind as they head into retirement.