Is the 4% Rule Still Viable?

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About This Episode

With COVID-19 variants keeping retirement-ready consumers wondering what’s next for potential market volatility, many are reevaluating a once common rule of thumb for retirement: the 4% rule. It held up well for many retirees in the past, but most fixed income financial products like bonds no longer yield anything close to the 4% that would be required to support withdrawals. With rates actually hovering around 0%, what is a viable strategy today?

FIAs, or fixed index annuities, offer some advantages, especially given COVID-19’s impact on the market. When combined with a sensible systematic withdrawal plan, they can provide an alternative with the potential for upside return, via interest credits based on partial returns of market indexes. This may allow for a yield closer to 4% while still preserving some or all of the principal. Doug Wolff, President of Security Benefit is here today to discuss how FIAs could be a useful consideration for retirees amid today’s shifting markets.

About Our Guest

As president of Security Benefit Life, Doug Wolff oversees product development, pricing and operations of Security Benefit Life, Security Financial Resources and is chairman of the board for Everly. He brings over 30 years of experience in actuarial pricing, product development, financial consulting, marketing, investments, and strategy formulation to his role.

Show Notes

Here is a link to the Security Benefit web site.