Rethinking the 4% Withdrawal Rate

ThirtyNorth talked with Jeff Benjamin at InvestmentNews about the rule of thumb of a 4% withdrawal rate being “safe” in retirement. Here’s a quote from the article:

“The seemingly endless debate across the financial planning industry over retirement withdrawal rates appears to hover over the consensus that 4% is a good place to start. Beyond that, advisers and analysts disagree about what amount is currently “safe,” and revert to a need for flexibility based on everything from Social Security income and health issues to home equity levels and market cycles.

“No one really knows what their safe withdrawal rate will be until they’re actually in retirement,” said Blair duQuesnay, chief investment officer and principal at ThirtyNorth Investments, which manages $135 million in client assets.”

Read the entire article on the InvestmentNews website. (login may be required)