Planning Newsletter – Apr 2016
One early retirement study noted that a withdrawal rate of 4% is relatively safe.
Many researchers have evaluated withdrawal rates and related issues since then - proposing adjustments to the traditional 4% rule.
One such proposal, the Target Percentage Adjustment (TPA) suggests modifying your withdrawals year by year.
Being flexible in the face of market downturns and inflation can allow you to increase your withdrawals in retirement.
Be sure to know what your withdrawal rate is from year to year.