The new savings target for a modest retirement: $8 million? – By Shawn Langlois (Marketwatch) / Aug 17 2020
You might want to hold off on that Winnebago.
The 4% Rule has long been used as a guideline for retirees in determining how much they should be able to withdraw from their retirement account while still maintaining a balance that will allow for the same income stream to flow through their golden years.
But here’s a stark reality check from the man behind the popular Financial Samurai blog:
‘The 4% Rule as a safe withdrawal rate in retirement is dead.’
He explained to MarketWatch on Monday that the outdated rule was established back in 1998 by a group of professors at a time when the 10-year bond yield averaged 5%.
Continue to article: https://www.marketwatch.com/story/the-new-savings-target-for-a-modest-retirement-8-million-2020-08-17?mod=home-page
