Hi Bill,

So many retirees use the services of a financial advisor these days. Would I be correct in assuming that your 4% rule, now revised to 4.7%, does not take into account fees charged by a financial planner?

Thanks,
M.

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Thanks for your note and your interest in my research.

You are correct in stating that SAFEMAX does not include provisions for advisor fees or other living expenses.

I don’t “net out” advisor fees from SAFEMAX for two reasons. First, many retirees have multiple sources of income and may elect to pay their advisor fees from those other sources, including Social Security, pension and annuity income. Second, advisor fees vary dramatically from retiree to retiree. Any percentage I picked risks excluding many retirees. I prefer to keep my results as universal as possible.

Best regards,

Bill Bengen