Not Your Father's Economy
July 11, 2013
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.
...
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.