Introduction

What do retirees in 1921, 1966, and 2010 have in common?

Very little—and that’s the problem.

Each faced a different life expectancy and invested in a different economic climate with varying inflation expectations, interest rates, and market valuations¹.

The truth is that these dates weren’t chosen at random: One had the highest safe withdrawal rate in recorded history, the other the lowest, and the third barely survived the ravages of inflation.

Each of these three retirees lived through dramatically different economic times, yet according to conventional wisdom they all share the same safe withdrawal rate² in retirement—roughly 4%.

It makes no sense.

How can a static, one-size-fits-all solution to a problem as varied and complex as knowing how much money you need to retire be correct? How could retirees in 1921, 1966, and 2010 share the same safe withdrawal rate when market valuations, interest rates, inflation expectations, and expected lifespans were completely different.

It’s impossible. It’s wrong.

Yet, that is the conventional wisdom in the financial planning profession. It is known as the 4% Rule³, and it is widely considered to be “the truth” in safe withdrawal rates for retirement.

The problem is it’s not the truth and every day people risk a lifetime of retirement savings on it. There are better solutions.

In this book I  reveal the problems hiding behind the 4% Rule and provide you with practical solutions you can implement for your retirement security.