Originally published to the Globe and Mail on June 3, 2021 When world markets took a nosedive in the early […]
Originally published to www.investmentexecutive.com on September 22, 2021
Retirement income planning is not a rigid, inflexible and one-dimensional process. This makes the popular 4% rule problematic, according to Moshe, Chief Retirement Architect in collaboration with Guardian Capital LP.
The 4% rule originated in a 1994 article by William Bengen, a retired American financial advisor, published in the Journal of Financial Planning.
“Assuming a minimum requirement of 30 years of portfolio longevity, a first-year withdrawal of 4%, followed by inflation-adjusted withdrawals in subsequent years, should be safe,” he wrote.
Milevsky laid out his concerns about Bengen’s 4% rule at a Financial Planning Association of Canada (FPAC) webinar on Monday.
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