Join Wade Pfau as he addresses how to determine sustainable spending levels from investment portfolios in retirement. Within the Retirement Income Style Awareness framework, this serves as the core of the Total Return style, but it is also relevant for discretionary goals within the Income Protection and Risk Wrap styles. The concept of safe withdrawal rates and the 4% rule developed from William Bengen’s analysis of the U.S. historical data. After explaining his approach and further refinements to the core methodology, the session shifts to consider the impacts of changing key assumptions behind the 4% rule. Ultimately, more sophisticated methods are required and described, and we will provide a particular emphasis on variable spending strategies.
Learning Objectives:
1. Understand the origins of the 4% rule
2. Explain how various assumptions impact the 4% rule
3. Consider whether 4% rule is appropriate for today’s retirees
*CE/CPE Eligible: 1.5 CE credits are available to subscribers with these designations: CFP, CLU, ChFC and RICP. CPA subscribers will earn 1.5 CPE credits.
Field of Study: Specialized Knowledge
Prerequisites: There are no prerequisites for this session.
Advanced Preparation: None
Program Level: Basic
Delivery Method: Group Internet Based
NASBA Approved
Financial Experts Network (Sponsor Id#: 145173) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.