We recently had a piece released in FA Magazine titled “The 4 Percent Rule: Static Decisions In A Dynamic World“.  In the article, we explore the implications of the widely accepted “4% rule” used by retirees to manage their withdrawals.  We find that a static rule (4%) based on a dynamic funding instrument (the stock market) leads to inefficient method for retirement planning when both the probability of failure and the cost of surplus are considered.  We then explore a more dynamic rule and show how it can reduce both your probability of failure and cost of surplus.

Any feedback or thoughts are much appreciated.

Corey is co-founder and Chief Investment Officer of Newfound Research, a quantitative asset manager offering a suite of separately managed accounts and mutual funds. At Newfound, Corey is responsible for portfolio management, investment research, strategy development, and communication of the firm's views to clients. Prior to offering asset management services, Newfound licensed research from the quantitative investment models developed by Corey. At peak, this research helped steer the tactical allocation decisions for upwards of $10bn. Corey holds a Master of Science in Computational Finance from Carnegie Mellon University and a Bachelor of Science in Computer Science, cum laude, from Cornell University. You can connect with Corey on LinkedIn or Twitter.