Is a 4% Withdrawal Rate ‘Just Right’? It Depends.
March 15, 2021 by Ginger Szala
How much should your clients spend in retirement? Too much and they’ll go broke, too little and they could be unnecessarily sacrificing quality of life. Is there a “just-right” rate of withdrawal from retirement accounts?
Morningstar portfolio strategist Amy C. Arnott examined this question in a recent column. As it has been explored many times by industry advisors and analysts, Arnott looked through a different lens. That is, going forward, where does the 4% rule for withdrawal rate stand today?