Are you worried about withdrawing too much money from your accounts in retirement? Nathan explains the 4 Percent Rule and why it’s been a proven strategy for determining retirement distributions. But first, join us as we unpack the latest headlines in the news.
In The News:
- Nathan says ultimately it’s good; what they’re trying to do is get free trade.
- Similarly to when we had the trade wars in the ‘70s, it will probably be a while before we get something settled.
- If you’re allocated right, you should be expecting this type of volatility.
The Confidence Corner:
[6:47] The 4 Percent Rule
- When you retire, if you’ve got a nest egg saved, this rule says you’re probably safe to withdraw 4 percent from it every year.
- In the 1990s, Bill Bengen wrote an article based on studies of distribution rates that worked.
- Even now, the 4 percent rule works if you have a diversified account.
- If you’re in large cap stocks then you didn’t make 4 percent, so diversification is important to have in retirement as you’re taking distributions.
- Looking over the past 40 years, 4 percent has worked. It even worked during the Great Depression.
- The report was run based on numbers as far back as 1926.
A Point Of Wisdom:
Nathan O’Bryant – Contact