The 4% Withdrawal Rule Died With Market Volatility & Longevity
Wade D. Pfau
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.
TransWorldNews, "The 4% Withdrawal Rule Died With Market Volatility & Longevity" (2016). In the News. 1467.