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  2. 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 Experts, including the creator of this popular retirement income strategy, believe it is outdated and retirees should evaluate their financial plans and spending to manage the risk of running out of money.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…
    Given market expectations, the 4% rule “may no longer be feasible” for seniors, according to a paper published Thursday by researchers at Morningstar. These days, the 4% rule should really be the 3.3% rule, they said.
    www.cnbc.com/2021/11/11/the-4percent-rule-a-pop…
    A 2021 Morningstar research paper appeared to sound the knell for the 4% rule calling it, “no longer feasible.” and saying a 3.3% withdrawal rate is more realistic.
    moneywise.com/retirement/retirement/retirement-s…
    The 4% rule was based on historical data, which might not apply anymore. The 4% rule may still work as a guideline to help you guess how far your money can stretch after you stop working, but your full retirement plan should be based on more than a single rule.
    www.thebalancemoney.com/what-is-the-4percent-r…
    And while the 4% rule may be valid for retirement planning purposes, it’s not necessarily the best approach to retirement spending. Instead, dynamic spending rules for retirement should enable most people to spend more than the 4% rule would allow and still give them confidence that they won’t run out of money in retirement.
    www.forbes.com/advisor/investing/is-4-four-percen…
     
  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.
    What is the 4% rule in retirement?The 4% rule is easy to follow. In the first year of retirement, you can withdraw up to 4% of your portfolio’s value. If you have $1 million saved for retirement, for example, you could spend $40,000 in the first year of retirement following the 4% rule. Beginning in year two of retirement, you adjust this amount by the rate of inflation.
    Is the 4% rule still relevant today?Opinions vary on the role of the 4% rule today. “I do believe the 4% rule is still relevant,” Conroy said, adding that it is a rigid approach to retirement distributions. Life is dynamic, and using the same withdrawal rate throughout retirement may not make sense as your needs change.
     
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