June 17, 2014 by Warren S. Hersch
As a guide to retirement income planning, the 4 percent rule
clearly needs to be revisited, as this article suggests. Based on a 75-year
analysis of stock market returns and retirement scenarios, the rule surmises
that retirees who withdraw 4.2 percent of their investment portfolio in the
initial year of retirement, then adjust withdrawals in subsequent years to
account for changes in the inflation rate, can reasonably expect to have enough
money to carry them through retirement. But given current market conditions,
including record-low interest rates, a two percent withdrawal rate, as many
advisors now believe, is the more realistic benchmark to live by. - Warren S. Hersch.
Yes, and well, let the planners know that if you have home equity and can get a reverse mortgage to throw additional equity into your retirement, you can add another 2% to the 4% rule and live at a higher level through retirement. It's the magic of the reverse mortgage. Yes, I can do that for you once you get into the 62 year old age group. Thanks for calling Warren Strycker at 928 345-1200 for clarification. or consider my warren-strycker.blogspot.com for more information.
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