Why the 4 Percent Withdrawal Rate Is Obsolete
Wade D. Pfau
The 4 percent retirement withdrawal rule, initially introduced by MIT graduate and financial planner William Bengen in 1994, calls for retirees to withdraw no more than 4 percent of their assets annually so as to not outlive their money.
Yet, the 4 percent rule is a flawed concept based on questionable research and overly optimistic bond returns, says John Robinson, owner of Financial Planning Hawaii in Honolulu.
Friedberg, Barbara, "Why the 4 Percent Withdrawal Rate Is Obsolete" (2018). In the News. 2796.