Much has changed over the last year—especially for those who are taking withdrawals from their investments to fund living expenses.  Even investors who maintained a moderate portfolio allocation may have sustained significant investment losses over the last year.  With portfolio declines, some retirees may find that they are having to distribute a greater percentage of their portfolio to fund “lifestyle” expenses.  As you will note from the table below, higher withdrawal rates reduces the likelihood that an investment portfolio will last throughout an extended retirement period. » Continue reading “A Rule of Thumb for Withdrawal Rates”