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  2. The 4% rule for retirement withdrawals is still relevant, but there are some considerations12345:
    • The rule applies only in year one of retirement.
    • After that, inflation dictates the amount withdrawn.
    • Some experts believe it is outdated and retirees should evaluate their financial plans and spending.
    • A more conservative 5% calculation may be used instead.
    Learn more:
    Even at extremely high stock valuations, research by financial planner Michael Kitces shows that the 4% rule still holds. In a 2008 paper, Kitces examined the relationship between the Shiller CAPE ratio and initial withdrawal rates. In statistical terms, he concluded that the correlation between the two was -0.74.
    www.forbes.com/advisor/investing/is-4-four-percen…
    Based on today’s economic conditions, retirees will need to rethink the popular 4% rule. Experts, including the creator of this popular retirement income strategy, believe it is outdated and retirees should evaluate their financial plans and spending to manage the risk of running out of money.
    www.usatoday.com/story/money/personalfinance/r…
    The 4% applies only in year one of retirement. After that inflation dictates the amount withdrawn. The goal is to maintain the purchasing power of the 4% withdrawn in the first year of retirement.
    www.forbes.com/advisor/retirement/four-percent-ru…
    However, according to a recent study carried out by Morningstar, the rule can still apply.
    www.wallstreetmojo.com/4-rule/
    Does the 4% rule still work? It is said that the 4% rule is a little conservative and really, a 5% calculation should be used instead (so your initial income is 5% of the value of your accumulated retirement funds at the start of your retirement).
    www.lovewell-blake.co.uk/news/the-4-rule-how-mu…
     
  3. People also ask
    Does the 4 percent rule still work?The four percent rule has provided a generation of retirement planners with a solid rule of thumb for retirement fund withdrawals. But does the 4% rule still work well in today's challenging market environment?
    What is the 4% rule?The 4% rule was introduced in 1994 by William Bengen, a financial planner who assessed historical market returns. He concluded that retirees could withdraw 4% of their retirement portfolio in the first year, with subsequent withdrawals adjusted for inflation, without depleting their funds over a 30-year retirement.
    Does the 4% rule still apply?The market volatility of recent years made that rule suspect for many new retirees, but a new study from Morningstar finds that the rule can still apply. Do you have questions about building a long-term plan for retirement? Speak with a financial advisor today. What Is the 4% Rule?
    Do financial advisors still use the 4% withdrawal rule?Since then, the world — and retirement — has changed. Yet 61% of financial advisors are still using the 4% withdrawal rule, according to research from David Blanchett, managing director and head of retirement research at PGIM DC Solutions. Now, researchers are looking at the most effective ways to integrate the 4% rule with today’s portfolios.
     
  4. WebJun 9, 2023 · The 4% rule is a generic guideline for retirement withdrawals, but it may not fit your situation. Learn how to adjust your spending rate based on your life expectancy, asset allocation, and risk tolerance.

  5. WebFeb 19, 2023 · Is the 4% Rule Still Valid? In recent years, some have questioned whether the 4% rule remains valid. They point to low …

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