In the News

Title

The 4% Withdrawal Rule Died With Market Volatility & Longevity

Authors

TransWorldNews

Document Type

Article

Publication Date

6-20-2016

Abstract

The decades-old notion that retirement assets can typically last 30 years with a mix of 60% stocks and 40% bonds is in doubt, and retirees who have followed this lead may face unexpected asset shortfalls that can last for years. A current distribution rate closer to 3% has roots in low and sustained rates of return, market volatility, longer lives and revised distribution schedules. Importantly, many retirees have taken the 4% guideline for granted, and do not recognize the downside effect on their principal.