4%: A Rule To Be Broken?

Christian talk radio with Rob West

For more than 25 years, financial advisors have used the 4% rule for retirement withdrawals. However, some advisors are now saying this may be too high, while the man who wrote the rule believes it is too low. In today's Faith and Finance, Rob West weighs into the debate and explains the importance of choosing the right percentage to withdraw from your assets each year in retirement. He explains the origin of the 4% rule and how Bill Bengen, the investment advisor who wrote it, has now suggested a higher withdrawal rate of 4.7%. He also discusses the importance of diversification and having an experienced financial advisor to help with retirement investing. Ultimately, the goal is to have enough saved up to last for a 30-year retirement, and the right withdrawal rate will depend on the individual's financial situation.