Retirement withdrawals: The 4% rule has gotten a boost

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It may be time to give the 4% rule an upgrade. Retirement planners have used the popular guideline for their retirement withdrawal rates, but why is its creator saying that it's time for a revision? In this episode of Decoding Retirement, Robert "Bob" Powell speaks with Bill Bengen, "4% rule" Researcher/Author of "A Richer Retirement", about how to create a retirement income plan. Despite pushback from other voices in the retirement advising community, Bill touts his new and improved "4.7% rule", which is meant to be used a guideline for retirees' retirement withdrawal plans. Find out all the details in this week's episode of Decoding Retirement. Creating a retirement income plan (:45) What are Bill's 8 customizable elements of retirement income plans? "The idea is to keep your withdrawal close to the level of inflation to maintain your lifestyle." Asset allocation (6:30) How should retirement planners set up their investments? "It's a very individual thing." Withdrawal timing (15:00) What's the best way to withdraw your retirement income? "We can select with confidence a withdraw rate that accurately reflects what's happening in the past and hopefully the future." Video highlights: :50 - Retirement income plan 3:30 - Planning horizon 6:20 - Asset allocation 11:20 - Portfolio rebalancing 15:00 - Withdrawal timing 20:00 - Asset-liability matching 21:00 - Alternative retirement income Retirement planning doesn’t mean locking up your money for a rainy day and forgetting about it