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.
04.06.2023 - Spending
Sustainable Spending from Investments in Retirement
Presented by Wade Pfau, PhD, CFA, RICP®, RISA Profile