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Wade Pfau Offers a New Approach to the Calculation of Safe Withdrawal Rates

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Wade Pfau recently published an article in the Wall Street Journal (What Is the Sustainable Spending Rate for Retirees in 2016?) that offers a new take on the question of how to properly calculate the safe withdrawal rate. Wade modifies the concept a bit and offers new terminology to refer to his modified version of the concept — he calculates the “sustainable spending rate” rather than the “safe withdrawal rate.”