'Stop talking about 3% and 4% drawdown rules' - FinalytiQ's Okusanya

Okusanya (pictured) said that, although the popular default drawdown rates were rooted in empirical data, there was still room for improvement.  He explained the arbitrary rules of thumb come from US adviser William Bengen, who pioneered the idea of ‘safe withdrawal rates' - drawdown rates that withstand longevity risk by assessing the worst-case scenarios of historical markets. Although he applauded Bengen for his pioneering work, he called on advisers to stop talking about these 3% or 4% rules that come from his research because "there are so many variables in this equation". He add...