The magic withdrawal number in a low-interest-rate retirement? You'll be surprised
Wade D. Pfau
If you're planning for low interest rates to last, you might want to take a second look at your clients' withdrawal rates in retirement.It seems that a 2.8% withdrawal rate over a retirement period of 30 years, with a 40% allocation to stocks, is the recipe for a 90% success rate — if interest rates continue to stay low, according to a recent study by David Blanchett, head of retirement research at Morningstar Inc.'s investment management division.
Mercado, Darla, "The magic withdrawal number in a low-interest-rate retirement? You'll be surprised" (2013). In the News. 517.