CFA Article - Rethinking the 4.5% Rule

Article posted by the CFA Institute in: Economics, Portfolio Management
By Fred Sloan, CFA and Carl Friedrich, CFA
 
Is the standard for calculating a retirement portfolio's maximum withdrawal rate all wrong?
 
In "Rethinking Retirement Rules," Reshma Kapadia challenged the idea that a 4.5% spending rate should be applied consistently over an extended period.
 
The root of the problem, of course, is that we are in a protracted period of historically low interest rates.
 
Click on the image below to read the full Article
 

 

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