Dave Ramsey Proposes an 8% Withdrawal Rule... Is that Realistic?

Recently, on his popular show,  Dave Ramsey, a well-known media personality dismissed the common advice to withdraw only 4% of your retirement savings annually as "moronic," advocating instead for an 8% withdrawal rate. In this video, Dustin with Mundorf Wealth Management  and Erin Kennedy talk through whether and when an 8% withdrawal rate makes sense.

Here's the answer: yes, it might make sense, but only if a retiree is prepared to accept high volatility and drastic spending adjustments.  

Finding the correct withdrawal rate will vary from person to person. To find that number, you need to account for life expectancy, spending habits, and market conditions. Finding that number will ensure your savings will last throughout your retirement while allowing you to maintain your desired lifestyle. To learn more about how the math works, read this article by well-known professors and academic researchers at The American College of Financial Services, David Blanchette, Michael Finke, and Wade Pfau, titled "Supernerds Unite Against Dave Ramsey's 8% Safe Withdrawal Rate Guidance." (https://www.thinkadvisor.com/2023/11/13/supernerds-unite-against-dave-ramseys-8-safe-withdrawal-rate-guidance/)

If you'd like to find your own unique, personalized withdrawal rate (keeping in mind that the rate should be revisited often), please give Dustin a call or text at the number on the website, or book a free chat by visiting www.LongLiveMyMoney.com 

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