Tag Archives: post retirement

The 4% Withdrawal Rule

The goal of any retirement income or withdrawal strategy is to live a good standard of living without running out of money but also without leaving behind too much and thus living a more meagre life than necessary.

The 4% withdrawal or drawdown rule is probably the most common retirement income withdrawal strategy in use today and is an easy one to understand. Because of this, I am starting my series on retirement income withdrawal strategies here. This rule of thumb was created by William Bengen, a California-based financial planner in 1994. It is based on a study1 of historical returns, and looks at what rate one can safely withdraw without running out of money before dying. Continue reading The 4% Withdrawal Rule

Link: How Much Stock Should You Hold In Retirement

Link → How Much Stock Should You Hold In Retirement

This article from MarketWatch.com deals with an important topic that I want to go into in some detail later on. I think each of the three methods listed deserve their own post in the future. I haven’t decided which method I favor for the DIY Investor, so stay tuned for more analysis and research on current thinking about asset allocation in retirement.