ThinkAdvisor: Covisum's Advisor and Quant Discuss the 4% Rule

Lauren Laferla, PR & Content Marketing Manager
July 5, 2018


In an ongoing series exclusive to ThinkAdvisor, Joe Elsasser, CFP® and Ron Piccinini, PhD provide readers with two distinct perspectives on the same topic. This week, we asked Joe and Ron to discuss, the 4% rule

Joe's response included:

"Although the 4% rule has come to be relied on by many in the financial services world, we need to remember that it was an iteration of prior thought based on better assumptions. New research is challenging those assumptions and coming to even more conservative results."


And Ron's response included:

"In the age of computers, professional advisors will use financial planning software to find the proper withdrawal strategies, take into account the suitable variables, and stress test the plan. Eventually, it will be the case that 4% will be the proper Safemax for a client, but that will be the exception, not the rule."


Read the full response from both Joe and Ron in ThinkAdvisor

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Posted by Lauren Laferla, PR & Content Marketing Manager
Lauren is a content marketing enthusiast with a love for storytelling - on camera, in writing, and through others. She has a robust communications background that includes: public relations, content creation, internal communications, digital marketing, and copy editing. Driven and motivated, Lauren holds a bachelor's degree in English and is an avid reader.