Not Your Father's Economy

Fox Business- What a roller coaster ride it's been, so much so that Texas Tech Financial Planning professor Michael Finke wrote an article stating that, “the 4% rule is dead.” His new number, 2.8%! Blame it on whatever you like. A 2.8% withdrawal rate! Believe me; this puts a damper on the retirement party like wet towel on a single match. Time to re-visit the budget and see what we can live without.

You are preparing to retire.  Maybe you retired 5 years ago.  You have  a plan.  You have a budget.  You have guaranteed income streams such  as social security, pensions, or rental income. You supplement this income with  withdrawals from your nest egg, or you plan to do that before too long.   You try to pay attention to tax rates and the various loopholes available to  keep tax liabilities down.  

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What a roller coaster ride it's been, so much so that Texas Tech Financial  Planning professor Michael Finke wrote an article stating that, “the 4% rule is  dead.”   His new number, 2.8%!  Blame it on whatever you  like.  A 2.8% withdrawal rate!  Believe me; this puts a damper on the  retirement party like wet towel on a single match.  Time to re-visit the  budget and see what we can live without.

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