Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

The Ideal Withdrawal Rate For Retirement Does Not Touch Principal

Friday, May 10, 2013 - 9:11 PM
"I always scratch my head when I hear advisors talk about the “4% withdrawal rule” or any withdrawal rate that’s greater than a risk free rate of return for that matter. Times have changed folks."

The Ideal Withdrawal Rate For Retirement Does Not Touch Principal | Financial Samurai
8
ShorebreakShorebreak2,699 posts since
Apr 6, 2010
Rep Points: 14,632
1. Saturday, May 11, 2013 - 5:47 PM
The problem is that their are rules that require you to take out from your IRA (unless it is a Roth) when you have attained the age of 70 1/2.
3
Ally6770Ally6770943 posts since
Jan 16, 2010
Rep Points: 2,742
2. Sunday, May 12, 2013 - 4:05 AM
The table and the associated calculations do not make any sense to me; what does the last column mean?  Is Sam kidding when he gives the data for 2% withdrawal rate??

The bottom line is that one can plan for one's retirement by "reasonable' and "rational" savings.  To give various versions of complicated calculations and almost assuredly wrong conclusions is silly and unnecessary.

Come on, Sam, stop fooling around to show your math skills (or "academic gymnastics" as you called it)!
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
Reply