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BFG in the News: James answers a reader’s question about withdrawing from retirement accounts using the 4% rule

Investing Retirement Planning Income Planning Baron Team Insights

James Suazo, ChFC®, is quoted on this topic, answering a reader’s question on NJMoneyHelp.com by Karin Price Mueller, “I want to retire.  Should I use the 4% rule?”, originally published on February 22, 2023.  

A 30-second read by James Suazo, ChFC®:  The 4% withdrawal rate has been used over time as a rule of thumb for withdrawals in retirement. However, we recommend reviewing your specific plan.  What is your current lifestyle? Do you plan to maintain the same lifestyle in retirement? What are your retirement goals?

The 4% withdrawal theory uses a specific portfolio strategy of half stocks and half bonds, which may not match your tolerance for risk. It also plans for 30 years of withdrawals. If you are planning for a longer period, this may not be a good place to start. Keep in mind we always recommend planning into your 90’s.

We recommend meeting with a Fiduciary Financial Advisor to review your specific plan. Having a plan in place with regular reviews will put you in the best position to achieve your goals in retirement.

Read Karin Price Mueller’s article here. 

If you have any further questions, please reach out to your Baron Team.

Disclosure: This is a general communication being provided for informational purposes only. Past performance is no guarantee of future results. Every investment strategy has the potential for profit or loss. This material is not intended to be relied upon as a forecast, research, tax or investment advice.