Does the 4.7% rule still apply to people who retire much earlier in life?
Does the 4.7% rule still apply to people who retire much earlier in life or should the withdrawal rate be more conservative?
Excellent question, AG. The safe withdrawal rate (SAFEMAX) does decline as a function of planning horizon. For those with very long time horizons, say 50 years or more, the 4.7% rule becomes the 4.1% rule, approximately.
Best regards, Bill Bengen



