Making Sense Out of Variable Spending Strategies for Retirees
Variable spending strategies can be situated on a continuum between two extremes: spending a constant amount from the portfolio each year without regard for the remaining portfolio balance, and spending a fixed percentage of the remaining portfolio balance. Variable spending strategies seek a compromise between these extremes by avoiding too many spending cuts while also protecting against the risk that spending must subsequently fall to uncomfortably low levels.
Pfau, Wade, "Making Sense Out of Variable Spending Strategies for Retirees" (2015). Faculty Publications. 260.