MoneyWise

Rob West

No More 4% Rule?

December 4, 2020
00:00 0

For 25 years, the 4% rule was carved in stone as the rule that retirement investors rested their golden years on. However, that rule is no more. It’s always upsetting when something you view as the truth turns out to have flaws. Today, host Rob West and Steve Moore talk about the 4% rule and other retirement planning.

 

·      The 4% rule is the idea made by Bill Bengen that you have to adjust your budget so that you never withdraw more than 4% a year from your investments. This is supposed to guarantee that your retirement savings will last at least as long as you do.

·      Bengen now says the average safe withdrawal rate is around 7% and could be as high as 13%, but we aren’t recommending that anyone withdraw that much.

·      The new rule, according to Bengen, is 5%. Bengen says he uses the 5% figure for his own retirement planning.

·      5% isn’t a huge change percentage wise from 4%, but the money difference could be significant.

 

Here are a couple of questions we answered from our callers on today’s program:

 

·      What is your opinion on permanent life insurance as a tax shelter for later?

 

·      I have around $80,000, half of which is in a Roth and the other half is inherited. I went to an advisor and they told me I could put more money into the Roth, but a different advisor said the opposite. What do you suggest?

 

 

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About MoneyWise

MoneyWise is a daily radio ministry of MoneyWise Media. Hosted by Rob West, the program offers a practical, biblical and good-natured approach to managing your time, talents and resources.

About Rob West

Rob West is the host of the nationally syndicated radio programs MoneyWise and The MoneyWise Minute heard on more than 900 radio outlets each day. Rob also serves as the President of Kingdom Advisors, an international community of financial professionals who are specialists in delivering biblically wise financial advice. Rob serves as primary spokesperson for the organization and gives leadership to organizational strategy.

A radio veteran, Rob previously co-hosted a live, call-in, financial radio program with his father from 1998 through 2008 at WAFG, Fort Lauderdale, FL. Rob has dedicated his professional career to working at the intersection of faith and finance having led a successful faith-based financial services firm, serving as the host of several radio programs on a biblical approach to finance, and speaking frequently on the topic. Rob and his wife, Julie, live in Marietta, GA with their four children.


 

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