Suze Orman's Insights on Retirement Withdrawal Strategies

Saturday, 25 May 2024, 10:15
Suze Orman challenges the popular 4% rule for retirement withdrawals, citing its flaws. Exploring the limitations of the rule, Orman stresses the importance of considering factors such as longevity, asset allocation, and timing for a more sustainable retirement plan. By advocating for a cautious approach and strategic withdrawals, Orman offers alternative strategies for retirees to safeguard their financial future.
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Suze Orman's Insights on Retirement Withdrawal Strategies

Meet the 4% rule

The 4% rule, introduced in 1994 by William Bengen, suggested retirees could withdraw 4% in the first year of retirement, adjusting for inflation annually.

What's wrong with the 4% rule?

  • Longevity: Consider your expected lifespan when adopting a 30-year plan.
  • Asset allocation: Diversified portfolios challenge the rule's applicability.
  • Timing: Market fluctuations impact withdrawal rates significantly.

Ms. Orman advises strategic withdrawals and careful planning for a secure retirement.

What stocks should you add to your retirement portfolio?

The Motley Fool Stock Advisor recommends 10 promising stocks for potential long-term growth.

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