Monday, March 4, 2013

Say Goodbye to the 4% Rule
(Wall Street Journal, March 1, 2013)

What to do when the old math doesn't add up?  This Wall Street Journal article offers three alternatives to the 4% Rule. Two of the three have already been discussed on this website and the third is just a variation of the safe withdrawal rate approach.  I continue to believe that the best answer to this question is to recalculate your withdrawal budget every year using data and assumptions that reflect your personal financial situation as advocated in this website.