Is 4% Withdrawal Rate Still a Good Retirement Rule of Thumb?

Here is the article.

Analyzing the 4% Rule with Real-World Numbers

So here is our investment plan. We are going to take the $1 million and invest half into stocks and half into bonds using the Vanguard 500 Index Fund (VFINX) and the Dodge and Cox Income Fund (DODIX). We are going to rebalance the portfolio every six months. During year one we’ll assume that you withdraw and spend $40,000. In year two we’ll assume that due to rising prices you’ll need to withdraw 3% more, or $41,200. We’ll assume you’ll continue to withdraw 3% more each year.

Here are the annualized returns of each decade:

• 1989-1998: 14.09% per year
• 1999-2008: 2.59% per year
• 2009-2018: 9.45% per year