July 23, 2013
When you have retired, your goal is to expire before your bank account does. The easiest way, of course, is to take up juggling hatchets.
And, says Michael Finke, professor of retirement planning and living at Texas Tech, you could be living a lean retirement for no reason, even if you stick with an initial 4% withdrawal rate. "The 4% rule assumes you're going to live to age 95, and most of us are going to be dead by then," he says. "If you're really conservative, you didn't run out of money, but you left a lot of retirement joy in the bank." Among couples age 65, just 18% will have one person who hits 95.