Liz Weston responds to a question from one of her readers that asks her if a 3% withdrawal rate is too conservative for someone who is retired. She sums up her advice in this article. An excerpt is below:
Some advisors contend that a 3% initial withdrawal rate, adjusted each subsequent year for inflation, is too conservative. If you retire into a long-lasting bull market, it may well be. But none of us knows what the future holds, which is why so many advisors stick with the 3%-to-4% rule.