

The Inventor of the 4% Withdrawal Rule has Updated His Recommendation. It is Significantly Less than Guaranteed Lifetime Income Benefits
Bill Bengan published a study in the Journal of Financial Planning in 1994 that introduced the 4% withdrawal rule. His study recommended initially withdrawing 4% from your portfolio to ensure you will not run out of money in retirement.
The financial industry ran with this recommendation ever since.
JP Morgan projects the following on a typical portfolio:
Withdrawal Rate Likelihood of not running out of Money
3% 95 - 100%
4% 85 - 90%
5% 65 - 70%
6% 40 - 45%
If you increase your withdrawal rate, your likelihood of success decreases significantly.
Current Guaranteed Lifetime Income withdrawal rates:
- Age 65: 7.5% guaranteed for life
- Age 75: 8.5% guaranteed for life
- Rates increase if you are older
You can increase your income significantly with 100% likelihood of success. You cannot outlive your income.
This is the "Golden Era" of fixed assets. The best rates in 40+ years! Insured with guarantees.
- Your Personal Bank policies are insured, with guarantees, income tax-free, highly liquid, and likely to increase returns for the next 5-10 years due to higher bond yields.
- Fixed Index Annuities have the best upside potential in 40+ years with no downside market risk. The principle is guaranteed. Some offer signing bonuses up to 16% with strong upside potential.
- Guaranteed Lifetime Income is the highest in 40+ years. Some products offer up to 30% signing bonus. Other products offer up to 10% increased guaranteed lifetime income each year you defer.
Please contact me with any questions.