Finke Study Warns: 4% Retirement Rule is Dead, Long Live Annuities
Wade D. Pfau
Financial advisors relying on the classic “4% rule” for their clients’ retirement income have a better than even chance of failure, according to newly published research.
Titled “The 4 Percent Rule is Not Safe in a Low-Yield World,” the study by Michael Finke, Wade Pfau and David Blanchett argues that advisors make a grave mistake in basing their clients’ retirement plans on historical returns that may be an anomaly.
Weinreich, Gil, "Finke Study Warns: 4% Retirement Rule is Dead, Long Live Annuities" (2013). In the News. 518.