There's a better way to create income in retirement than the 4% rule of thumb.
And that, according to Chuck Robinson would be the phased-income approach that he first wrote about in a Journal of Financial Planning paper that was published in 2007.
In this video interview, Robinson, a financial planner with Sensible Money, describes how the phase-income approach, or what some refer to as the time segmentation or the bucket approach, generates on average the following outcomes:
1) It generated initial income at age 65 that was nearly twice the traditional 4% solution; and
2) It produced more cumulative income from age 65 to 95 than the traditional method, while leaving a residual value at age 95 to provide a legacy or to increase total income.
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