Faculty Publications


A Safer Approach To Retirement Income Planning

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The relationship between stock market valuations and sustainable spending rates has great implications for retirement planning when we consider how the pre-retirement savings phase and the post-retirement withdrawal phase can be linked through the stock market valuation level at retirement.

When considered as a whole, the historical data show that, though the relationship is not perfect, the lowest sustainable spending rates (which give us our conception of the safe withdrawal rate) tend to occur after prolonged bull markets.