FYI: About four years ago, I authored an article for Financial Advisor in which I examined risks to the “4.5% safe withdrawal rule,” which I had developed over many years of research. At that time, my conclusion was that the rule was still viable. But when you consider the case of the person who retired on January 1, 2000 (someone who had to contend with not just one but an unprecedented two huge stock market declines within 10 years), the rule was under slight duress. I opined that the rule’s survival depended on the avoidance of a sustained bout of double-digit inflation in the near future, the kind of inflation the U.S. endured in the 1970s, which was a key element giving rise to the 4.5% rule in the first place.
Regards,
Ted
http://www.fa-mag.com/news/is-4-5---still-safe-27153.html?print
