Is The 4% Rule Now The 3.3% Rule?

One of the most common retirement rules of thumb is the 4% rule, which helps guide you on how much you can take in retirement distributions without running out of money.  It essentially suggests that if you have $1M in investments, you can safely withdraw $40K per year, adjusted for inflation. New research by Morningstar suggests that instead of using 4% as a guide, you should use 3.3% instead.

In this episode, I’ll go into why I don’t like using either percentage as a rule in your retirement and I’ll tell you what to do instead.