Unfortunately, despite being a little outdated, the “4% withdrawal rule” is a guideline that gets
pushed around a lot. Rarely is it fully explained . I would not be surprised if many believe a 4%
withdrawal rate is all but guaranteed.

What is the 4% withdrawal rule?

Roughly, it’s an income guideline purported and followed by many. It states that with the proper
60% stock/40% bond allocation, you should be able to comfortably withdraw 4% from your
accounts on an annual basis without fear of running out of money.

The main problem with this way of thinking: How are your assets allocated? Are you in a 60/40
allocation or something different due to your needs?

So, if the 4% rule isn’t a universal law, what is the best rule to follow on your income
withdrawals?

Work with a professional to develop your personal, realistic, withdrawal plan based on your
investments and needs.

I know that isn’t the answer you were probably hoping for, but the fact is, all of us are unique.
We all have unique income needs. We all have unique risk tolerance levels. We all have varying
amounts of assets to work with.

Your uniqueness requires a unique plan. If you don’t already have a clear plan, give us a call.