How much money can you spend in your retirement

Most Professional Financial Advisors use a Rule of Thumb called  "The 4% Rule". Rules help clients understand what they  should or should not do. This rule states that if you  want a high probability that your  retirement assets will last as long as you live you should  remove or spend no more than 4% of your assets per year.  This rule applies  to self managed money accounts and  does not apply to Defined Benefits assets.  Recently we have lived through 5 or more years with Low interest rate earnings, High market volatility and we are actually living longer than ever in history. A number of  economists and planners have asked and studied this question. "Does the 4% Rule still apply in todays world?" What a great question! Many financial Advisors now believe that it no longer provides adequate protect of your income for life. They believe that you should limit withdrawals to only 3 % or so if you  want your self managed assets to last for your lifetime.

A recent study that appeared in the Journal of Financial  Planning  has found that up to 18% of people utilizing the 4% Rule will in fact run out of money before they die. That is a terrifying study result! That means that many people will have  to work long and or spend less in their retirement years.

What should a retired boomer, retiree or pre-retiree do.  They can  decide to  work longer and spend less. Those are a couple of good steps. Clearly they should also convert at least some portion of their assets into a Lifetime guaranteed income stream. These products  are only available  from Licensed Life insurance agents with the products  and knowledge needed to meet  these needs.  This is what I have  focused my business on for  over 8 years. Some of  these products can Guarantee a withdrawal rate for  life of 5% or more for your  entire lifetime.  Now compare that to  the 4% Rule or maybe 3-3.5% withdrawal rate with self managed assets.  These products can guarantee you an income 25-66% more than you  can  get from any self managed assets with the same Asset value. Thes products do this with Zero Market Risk. They delivered during 2008-2009 and they  can do the same thing during the next  recession whenever the out of control goverment excess spending creates the next Recession. These products have a role to play in almost everyones retirement strategy.