Debunking Dave Ramsey's Advice on Safe Withdrawal Rates
/Dave Ramsey could not be more wrong about what you should assume as a safe withdrawal rate in retirement.
For those not sure, a safe withdrawal rate is the amount of money you can pull out of your account per year during retirement and never expect to run out.
I love Dave Ramsey's advice regarding budgeting and getting out of debt. However, his advice about safe withdrawal rates and the assumptions you should use about how much money you need to save for retirement is dangerous.
This video includes a 5-minute clip from his show along with the full analysis to show why his 8% withdrawal rate is wrong and why a 3-4% withdrawal rate assumption is more appropriate.
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