Does the 4% Rule Matter?

A new report claims that the so-called 4% rule of retirement spending needs adjustment – the media all seems atwitter (literally).  But does it (really) matter?

The 59-page report by some research folks at Morningstar opined that those wanting a high level of assurance that their retirement nest egg will last should spend no more than 3.3% of their savings in the first year of a three-decade retirement, and adjust for inflation after that.  And as you might expect – considering not only that the report calls into question a long-standing “rule” of retirement planning – and particularly that it does so in the context of reducing expectations for retirement spending – it garnered a lot of headlines, including the Wall Street Journal (and even this publication).

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* 1. Are you familiar with the so-called 4% rule?

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* 2. Do you use the 4% rule in your communications/financial planning education with participants/clients?

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* 3. Has the recent surge in inflation found its way into your communications/discussions about retirement planning?

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* 4. Does the so-called 4% "rule" matter in your practice(s)?

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* 5. What is your role working with retirement plans?

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* 6. What size plans do you PRIMARILY work with?

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* 7. Suggestions for future survey questions?  What would YOU like to ask other NAPA-Net readers?

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* 8. Want (me) to say "hi"?  leave your email!

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