Reported 6 months ago
The 4% rule, which suggests retirees can safely withdraw 4% of their portfolio in the first year of retirement, is criticized for being outdated and not accounting for various factors. Michael Finke, a wealth management professor, proposes a more flexible retirement income strategy that adjusts spending based on market conditions and individual longevity expectations. He advocates for incorporating annuities to manage longevity risk and provide stable income throughout retirement, encouraging a goals-based approach that focuses on lifestyle rather than failure rates. This alternative method allows retirees to enjoy better living standards and make informed decisions about their financial future.
Source: YAHOO