Should Your Retirement Portfolio Withdrawals Vary With the Market?
We delve into the trade-offs associated with flexible withdrawal systems versus those that deliver steady cash flows.
Research we released a few weeks ago came to an uncomfortable conclusion: Retirees who want to live on a predictable stream of income yet maintain a high level of certainty around not running out would do well to keep their spending down. Rather than the 4.0% that is often cited as a safe initial withdrawal rate, our research suggests that a 3.3% starting withdrawal amount is likely to be sustainable for balanced portfolios over a 30-year time horizon. (Here's the full paper.)