Is the 4% rule still valid?

Investing Strategies Retirement Investing
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https://www.nytimes.com/2015/05/09/your-money/some-new-math-…

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I’ve always seen it as a guideline rather than a rule, to be adjusted to each person’s unique circumstances.

Fuskie
Who thinks it is understanding the reasoning behind the 4% withdrawal rate that is more important than the number itself…

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The rule does give you a number target in your retirement planning. But most should see that as an asset minimum. You would ideally like to have a significant safety margin beyond that.

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It’s a 2015 article. I think we’ve had more math input to the system since then which might affect whatever it is the article is saying. I can’t get to the whole thing as it’s behind a paywall.

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mendomann: <<https://www.nytimes.com/2015/05/09/your-money/some-new-math-…

FCorelli: {{It’s a 2015 article. I think we’ve had more math input to the system since then which might affect whatever it is the article is saying. I can’t get to the whole thing as it’s behind a paywall."}}

IIRC the article correctly, it boiled down to if you pay an advisor 1% of AUM, then you can only spend 3% of the initial portfolio (adjusted for inflation) and expect the portfolio to survive.

Regards, JAFO

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IIRC the article correctly, it boiled down to if you pay an advisor 1% of AUM, then you can only spend 3% of the initial portfolio (adjusted for inflation) and expect the portfolio to survive.

Yep.

Study from ‘Professor of Retirement Income’ Dr. Wade Pfau shows you can double your retirement income by dumping your financial advisor.
https://retireearlyhomepage.com/wadepfau_2016.html

intercst

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IIRC the article correctly, it boiled down to if you pay an advisor 1% of AUM, then you can only spend 3% of the initial portfolio (adjusted for inflation) and expect the portfolio to survive.

It would be more informative if a 1% AUM fee was reported as "your money manager get 25% of what you can spend each year and you get 75%.

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