What 4% Rule? Morningstar Has a New Number
December 17, 2024 by John Manganaro
Morningstar identifies a new “safe” fixed withdrawal rate as one of the key takeaways from its updated annual State of Retirement Income report.
In addition, this year’s report digs into several potential retirement withdrawal strategies that can help savers make the most of their nest egg in retirement.
Wink’s Moore on the Market: Three point seven percent (3.7%) withdrawals can deliver a 90% probability that the saver’s portfolio won’t run short of funds during a three-decade retirement?
No thank you. I’ll buy the annuity with the 100% probability.
And I am not alone!
“The Morningstar team also urges savers and their financial advisors to explore how portfolio-withdrawal strategies can work hand in hand with other ways of increasing lifetime income — namely, delaying Social Security, setting up a laddered portfolio of Treasury inflation-protected securities or purchasing an ANNUITY.”
Thanks for the ThinkAdvisor article, John Manganaro. -sjm
