Today’s workers entering retirement face one big dilemma: What is the best way to turn their nest eggs into a steady stream of income?
One traditional approach — the 4% rule, whereby retirees can withdraw that portion of their portfolio in their first year of retirement and then adjust that rate for inflation thereafter — is not necessarily the best answer, according to new research by Mark Warshawsky, a senior fellow at the American Enterprise Institute, a conservative Washington think tank, and by Gaobo Pang, an independent researcher.
