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


CAPTRUST Headquarters: 4208 Six Forks Road, Suite 1700, Raleigh, NC 27609
Long Island: 3 Dakota Drive, Suite 310, Lake Success, NY 11042 | Phone: (516) 487-8220 | Fax: 516-342-4321
Manhattan: 368 Lexington Avenue, 3rd Floor, New York, NY 10017 | Phone: (516) 487-8220
Florida: 4440 PGA Boulevard, Suite 600, Palm Beach Gardens, FL 33410 | Phone: (561) 472-0827