Is There a 'Safe' Withdraw Rate?
No. We don’t use the safe withdrawal rate. I do apply it as a reasonability check to your tailor made retirement solution, but it is not a point of our discussion.
Scott Burns makes a great point in his Sunday Dallas Morning News column. In exploring alternative scenarios during retirement planning, we come to the conclusion time after time that changing the mix of investments before or during retirement does not have as big an effect as changing behavior around spending. This is the point that Scott will make below and I encourage you to let him take you through the reasoning.
This is not to say that managing the portfolio is not important, but in the vein of controlling what you can control, it is equally or more important to manage spending. That is the message that comes out of retirement planning.
View Scott Burn’s article here.