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In subsequent years, Bengen advised people to recalculate how much they withdraw based on the rate of inflation.
Bengen suggested that this method would help retirement savings last a minimum of thirty years.
Although Bengens advice is widely used in financial advising today, there are some detractors.
Dave Ramsey, a well-known financial personality and radio host, advises his listeners to withdraw 8%.
Here is an explanation of why Ramsey and Orman recommend theseretirement withdrawal rates.
Namely, it didnt account for potential losses, according to the op-ed authors.
She explains that if you wait until your 70s, 4% is acceptable.
Only if you have guaranteed income, like Social Security or a pension, should you consider withdrawing more.
Orman went as far as saying the 4% rule is very dangerous, citing economic volatility.
She prefers amore conservative approachto withdrawals due to uncertainty and recommends that people take the least amount possible.
Ultimately, numerous financial experts agree that the best withdrawal rate for retirement depends on individual needs.
Some years will produce positive returns, and others have significant losses.
Timing retirement appropriately can go a long way in ensuring your portfolio can withstand losses and last for decades.
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