Don’t rely on the 4% rule for your retirement
Many people are familiar with the “4% Rule” — the age-old advice for retirees who were told to withdraw 4% of their retirement accounts since the market averages a 7% return on investment accounts. So why is it that a large portion of retirees are running out of income years down the road when this rule seems so reasonable?
The problem is that the 4% rule no longer applies to retirees in the current market. Recent research (Finke, Pfau, Blanchett 2013) has shown that the rule worked during historically higher interest averages, but that in this day and age, a retiree would be 50% more likely to run out of money utilizing that rule.
Retiree News 
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