Safe Withdrawal Rates: A Do-It-Yourself Approach
Reconciling the assumptions that underpin safe withdrawal rate studies with one’s own capital market expectations and constraints is a daunting task, since those studies rarely reflect the practical realities of an advisory practice. But new research now provides a generalized framework for determining a safe withdrawal rate for a given retirement duration, acceptable failure probability, asset allocation and capital market expectations. Advisors no longer must be constrained by the assumptions and choices of others.
Pfau, Wade, "Safe Withdrawal Rates: A Do-It-Yourself Approach" (2012). Faculty Publications. 171.