Determining a “safe” amount of retirement spending is an increasingly popular topic amongst financial planners, yet a great deal of confusion exists about the current state of research and how it should be applied. In this session, we will explore the evolution of safe withdrawal rate research, from its starting point with Bengen almost 20 years ago, to the subsequent breadth of additional research on the impact of factors like expenses, taxation, varying time horizons, greater diversification, spending flexibility, annuities, and more. Ultimately, the outcome is a richer framework for determining safe sustainable spending levels for clients, adapted to the individual’s own particular circumstances.
Understand the origin of the “4% rule” and the safe withdrawal rate
Understand how the safe withdrawal rate should be adapted for additional/external factors
Be able to apply safe withdrawal rate adjustment factors to an individual client situation
Be able to create a customized, individualized safe withdrawal rate recommendation for a specific client situation
MSFS, MTAX, CFP, CLU, ChFC, RH,
Publisher | Partner,
Nerd's Eye View | Pinnacle Advisory Group