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However, there are certain complications associated with this rule-of-thumb approach, some of which include:

📌 Simplicity of the rule: While the rule is appreciated for its simplicity and ease of understanding, variations in lifespan and other income sources need to be factored in too.

📌 Sequence of returns and other variables: The impact of sequence of returns and other unpredictable aspects like health care costs could require a more flexible withdrawal strategy that the four percent rule doesn’t offer.

📌 Legacy and leaving options open: The rule doesn’t account for leaving a legacy, nor the option for changing wealth transfer preferences over time.

Alternative income models: As past podcast guest Wade Pfau has always advocated, there are numerous ways to secure a sustainable retirement income. Some alternative income models explored here include annuitization, maintaining income reserves, creating bond ladders and implementing a bucket strategy. Each model has its pros and cons, but the best choice depends on your individual circumstances.

You have numerous options for creating the right income strategy for you, but if you’re simply taking withdrawals from your investment portfolio, you don’t have a strategy. You're just hoping it works out.