Will Your Savings Last? What the Withdrawal Rate Studies Show
by William Reichenstein
Thats the question numerous withdrawal rate studies have attempted to answer, ever since the first study came out in 1994, to much applause by investors living off of their retirement savings.
Typically, these studies seek to determine the maximum safe withdrawal ratethe percentage of an investors portfolio that can be withdrawn in the first year, assuming that in subsequent years that amount is increased by inflation, and that the investor wants to be reasonably confident that their portfolio will not run out of money within his or her lifetime.
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