Beware the 4% Rule
I was listening to the radio after a day at the office when I heard a question posed to a very popular financial radio personality: "ls a 6% annual withdrawal rate too high for me to consider taking out of my portfolio to supplement my retirement income?" The radio host replied, "No, not at all. If you maintain a good amount of growth stock mutual funds, which have averaged over 10% a year you will be fine." Unbelievable! I would be horrified to find any financial consultant worth their salt agree with the above statement in fact, the Wall Street Journal made a good case for not relying on the very common 4% rule!
