The 4% Retirement Rule is Just a Starting Point

Also, the factors that helped lift Morningstar’s suggested starting safe withdrawal rate.

John Rekenthaler, vice president of research for Morningstar Research Services, explains how Morningstar’s study confirmed the 4% retirement rule and discusses why it’s important for new retirees to be flexible with their spending.

00:33 Six Retirement Withdrawal Strategies that Stretch Savings

03:17 What Has Changed with Retirement Withdrawal Rates?

04:44 Trade Offs to a Conversative Start with Your Portfolio

06:53 Risks and Benefits of Changing a Portfolio’s Stock Allocation

08:50 Flexible Spending Strategies

11:43 The Role of Guaranteed Income

13:38 Key Takeaways

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[RoseBalerus]

Great video, I’m 50, retired a while at 45. I have 35% of my capital investments in an IRA. 25% in index funds, and the balance spread across other investments acts. In cumulative of over $5m. I receive income from my rental properties too. Zero debt and all is going accordingly.

[jamesmorris]

John's remarks from about 8:00 to 9:00 really emphasize the folly of the 4% "rule". It's always seemed IDIOTIC to me..way too many variables. Money that you KNOW that you're going to need (or may need), in ten years or less..has NO BUSINESS being anywhere near, the stock market..unless you have so much wealth, in comparison to your cash-flow requirements. This is why "bucketing" makes ENORMOUS sense to me, instead of these ludicrous percentage "rules".