Wade Pfau: Pandemic Tears Up 4% Rule

The American College of Financial Services
ThinkAdvisor
April 14, 2020

In the age of COVID-19, social distancing, and pandemic planning, another crushing financial change: the 4% rule of thumb for income withdrawal in retirement has shriveled to only 2.4% for investors taking “a moderate amount of risk.”

That’s according to Wade Pfau, co-director of the New York Life Center for Retirement Income and RICP® program director. According to his latest calculations, traditional guidelines for income withdrawal are changing, and it’s more difficult than ever to get a retirement plan that’s off the rails back on track.

Read more of Pfau’s thoughts on how advisors can steer their clients through troubled waters, including his personal plans for retirement, in this interview from ThinkAdvisor.

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