Welcome to a new week here on the Retirement Quick Tips podcast. I’m your host Ashley Micciche, co-owner of True North Retirement Advisors, an independent financial advisory practice managing $340 million in client assets. I’m a Chartered Retirement Planning Counselor, and I started this podcast because I love helping people just like you gain clarity and make a plan for the retirement you envision. 

The theme this week on the podcast is: The New 3.3% Rule For Retirement

The 4% Rule is a short-hand rule of thumb that helps you calculate how much of your portfolio you can safely withdraw in retirement without running out of money.

It was a concept originally developed by financial advisor Bill Bergen over 25 years ago, and has been widely used since as a quick and easy way to ensure your portfolio withdrawals in retirement remain sustainable. The fact that the 4% rule has held up over a quarter century now as a way to determine a safe withdrawal rate, shows that even though this rule has some flaws it is still relevant and useful today.

However, new research from Morningstar suggests that the 4% rule for portfolio withdrawals in retirement should be adjusted down to 3.3%. 

So this week on the podcast, I’ll talk about why Morningstar is suggesting a lower withdrawal rate, the new assumptions that are built into this new recommendation, in what circumstances the 4% rule will still work, and why flexibility is key to ensuring you don’t outlive your retirement savings…no matter which withdrawal rate you go with.

I hope what I have to share with you this week will help you make smart and thoughtful decisions with your retirement. And while I am careful to not lead you astray, personal finance is not an exact science. There is no one-size-fits-all solution for everyone, so I encourage you to disregard anything I say that may not be helpful for you, and to consult your own financial, tax, and legal advisors regarding your own individual situation. 

That’s it for today. Thanks for listening! My name is Ashley Micciche...and this is the Retirement Quick Tips podcast.

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Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance