Guyton-Klinger Retirement Withdrawal Strategy--Is it Worth the Complexity?

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Today we look at what's called the Guyton-Klinger retirement withdrawal strategy. It uses the following somewhat convoluted decision rules:

The Portfolio Management Rule
The Inflation Rule
The Withdrawal Rule
The Capital Preservation Rule
The Prosperity Rule

In theory, Guyton-Klinger allows you to start with an initial withdrawal percentage notably higher than 4%. The downside is that depending on when you retire, you may have to make significant adjustments to your spending after inflation.

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Video Resources
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Guyton 2004 Paper: https://www.financialplanningassociat...
Guyton-Klinger 2006 Paper: https://citeseerx.ist.psu.edu/viewdoc...
Guyton-Klinger Decision Rules: https://docs.google.com/document/d/e/...
Criticism of Guyton-Klinger: https://earlyretirementnow.com/2017/0...
FIRE Calc: https://ficalc.app/
eFIREsim: https://www.cfiresim.com/

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ABOUT ME

While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.

I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (https://amzn.to/3by10EE)

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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.

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