More on the 3% Question

An article in Worth last year, Sustainable Spending, sheds light on the 3% rule advocated by Tiger 21 (see preceding post) and reports on interesting research by JPMorgan Private Bank.

One finding: "[A}n investor who lives purely off a fixed pool of assets and annually spends just 5 percent of his net wealth has a one-in-three chance of suffering a 20 percent reduction in his real wealth over the course of two decades."