Say Goodbye to the 4% Rule. Experts Now Think is a Safe Withdrawal Rate

The 4% rule, often used for retirement planning, is being revised to a 3.7% withdrawal guideline to better secure funds for life, considering current financial conditions.

Morningstar's updated retirement spending research suggests that retirees should start with a withdrawal of just 3.7% of their portfolio to ensure longevity of funds.

This adjustment to the rule arises from increased equity valuations and lower fixed-income yields, impacting overall return expectations for investments over the coming decades.

Retirement planning must now adopt more conservative strategies due to changing economic factors, moving away from the decades-old 4% guideline to ensure sustainable income.

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