Radio host Dave Ramsey’s advice for retirees to invest 100% in equities has sparked controversy among financial analysts. Despite being staunch in his belief, critics argue that his strategy relies heavily on the fallacy that stocks will always yield double-digit returns.
However, under specific conditions such as a short time horizon and early market success, his advice could lead to financial gains. Nonetheless, the strategy’s potential riskiness due to market unpredictability might not suit those with longer life expectancies.
Instead, a bolder initial withdrawal rate might be a better approach alongside market circumstance adjustments.
My Take…
I’m a little skeptical as he is advocating an 8% withdrawal rate. That’s all well and good if the market keeps going up, but as we know, history tells us another story.
For more details click on the link:
https://www.morningstar.com/retirement/an-8-retirement-withdrawal-rate
