In the News

Title

Why the 4 Percent Withdrawal Rate Is Obsolete

Document Type

Article

Publication Date

6-6-2018

Abstract

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.

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