Time for screencast #3. In today’s screencast I cover how the 4% rule, or 4% safe withdrawal rate (SWR), changes for different retirement periods. I thought I had covered this topic in an old post but as turns out I had not. It’s an important topic to cover. This is the first screencast where I cover one of the basic issues with the 4% rule of thumb – that not every retirement period is 30 years.
In the screencast I discuss how the SWR changes for shorter and longer retirement periods. I also start the discussion how it varies with the investment allocation in a retirement portfolio – from the standard 60/40 portfolio to more conservative and aggressive options. Here is the screencast.
For reference, below I included the key table in the screencast that I base my discussion on. The maximum SWR for each retirement period is highlighted in yellow.
As usual if you have questions or comments or suggestions for topics please post them in the comments here or on the video.