Ten Reasons Why the 4 Percent Rule is Too Simplistic

The well-known annual 4 percent withdrawal rate was originally presented as a fail-safe gauge for retirees to safely spend down their retirement savings over an anticipated 30-year period. New retirees today, however, are living through unprecedented market volatility and currently low interest rates. This uncertain economic environment is just one of several factors that challenge the sustainability of this old tried and true withdrawal rate. In reality, there are those for whom a lower rate of withdrawal would be more sustainable, while others may benefit from a higher withdrawal rate.

The respected Dr. Wade Pfau, CFA®, Professor of Retirement Income in our new Ph.D. program, wrote an article in the Spring 2014 issue of The Wealth Channel Magazine, that gives us ten good reasons why the 4 percent rule is too simplistic.


The need for retirement income planning is on the rise, and as a result, RICP® (Retirement Income Certified Professional®) is being discussed in the media now more than ever before.

Wall Street Journal – Wealth Adviser: Younger Advisers Seek Out Old Hands As Rates Rise

Life Health Pro – Innovations Worth a Look

Investor’s Business Daily – Financial Advisers Sharpen Their Retirement Offerings

Wall Street Cheat Sheet – 4 Ways to Maximize Your Social Security Benefits

Investment News– New Retirement Attracts Thousands of Advisers

Share these articles with your clients!

Announcing the all new ChFC® Web Event. WILL YOU BE THERE?

On July 16th, 2014 at 1:00pm EST, The American College will be hosting a web event to announce some exciting changes to the ChFC® curriculum. Don't miss out on this important event.

Register Now

Summer Doesn't Have to Mean Slow Business
During the summer months, business tends to slow down for some advisors, making many feel their networking opportunities are losing momentum. However, there are many ways to network during the warmer months to keep your business active.
  • Invite your clients and contacts to a sporting event, like a minor league baseball game. Tickets are affordable, and it's a great way to reconnect. Buy a block of tickets and give everyone a chance to network, making it productive for all involved.
  • Volunteer your time at a charity or corporate event. The summer is the perfect time to donate your time and effort to the company golf outing or charity event. You can use this time to serve your community while acquiring new contacts.
  • Join the committee of a professional or nonprofit organization and help them plan activities for the fall. This is a great opportunity to meet new people interested in the same things as you, which could lead to future ventures.
Use the warm summer months as a reason to get outside, enjoy the weather and make new contacts!
Join Us For Our Inaugural Clambake and Help Support Our Veterans
You have the power to make a difference in the lives of active duty military members, veterans and their families! Give back to those who have given our nation so much by joining us for The American College's first annual Clambake event, this August 17th and 18th, in the breathtaking Abbey Resort in Lake Geneva, Wisconsin. Hosted by The College's Penn Mutual Center for Veterans Affairs, the Clambake has all the high-quality content and entertainment you've come to expect from The American College. All proceeds from this event will go directly to fund the Center's Veterans Scholarship programs.

The Clambake will feature a Business Symposium with some of the industry's brightest and most influential minds, and will cover a wide variety of topics, including the impact PE firms and hedge funds are having on the insurance industry, innovations in distribution and banking, restructuring and technology, and much more!

Moderated by Tricia Guinn

headshot of Tricia Guinn

Managing Director of Risk & Financial Services for Towers Watson

Give back to our nation's military today!

Visit us online to learn more about the speakers,
entertainment offered, and to register.
Full Scholarships Available from The Penn Mutual Center for Veterans Affairs
The PennMutual Center for Veterans Affairs
– Offering Full Scholarships for Veterans and their Families!
The Penn Mutual Center for Veterans Affairs was established in 2012 to help Veterans and their families with the transition from soldier to civilian life. If you or your spouse is a recently discharged veteran, a wounded warrior, or retired from the military, you may be eligible to receive a full scholarship for nearly all of The American College's designations and Master's Degree programs.

For more information, visit theamericancollege.edu/PMCVA to review eligibility criteria, learn more about the Center, and apply.

For questions, please contact PMCVA@theamericancollege.edu.
Travel-Learn Cruise 2014
Take Advantage of Our First North American Alumni Cruise in 17 Years!
Join us as we set sail in the fall of 2014 for the spectacular beauty of New England, Nova Scotia, Quebec, and Montreal – a rare treat aboard a five-star luxury liner to view parts of the world that are close to home, yet a world away.

The Silversea's Silver Whisper Travel-Learn Cruise leaves Boston, MA on October 6th for 10 nights, ending on October 16th in Montreal, Canada. Some of the many benefits of this unique opportunity include:
  • Sailing with Silversea's Cruise Line, ranked first of all luxury lines in satisfaction. This is an all-suite ship, with exceptional meals, including all wines, liquors and specialty dining included in your fare.
  • Learning with Dr. Larry Barton, as this year marks his final cruise as the host and guest speaker. Join the hundreds of graduates that have already benefitted from these highly rated programs, offering his unique business insight that can grow your business.
  • Earning continuing education credits at sea (consult your tax advisor about the benefits you could receive).
  • Being a part of our first North American Alumni Cruise in 17 years. Enjoy the ease of travel, unpacking only once to see the splendor of New England, Nova Scotia and Canada!
"We have enjoyed several American College alumni cruises and highly recommend them. The seamless excursion - unpacking once and seeing so many beautiful ports and historic places, combined with networking with peers, is impressive. The continuing education credits are important to maintain your competitive edge. This year is especially important as it will be our last cruise hosted by Dr. Barton and his wife, Eliza, who manage each program with care."

- Kevin E. Baldwin, CLU®, ChFC®
Principal, B&L Financial Architects

Take advantage of this once-in-a-lifetime experience!

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in the news
James Shagawat
Alumni of The Month – June 2014
James Shagawat, MBA, CFP®, ChFC®
The Alumni of the Month for June 2014 is James Shagawat, MBA, CFP®, ChFC®. Congratulations, James!
Read more
David M. Morris
Alumni of The Month – July 2014
David M. Morris, JD, CLU®
The Alumni of the Month for July 2014 is David M. Morris, JD, CLU®. Congratulations, David!
Read more
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One Person - Transforming Lives with The American College - Join Our Campaign. Give Now!
ChFC and CLU - Highest Standard of Knowledge and TrustThe marks CLU® & ChFC® are the property of The American College and may only be used by individuals who have successfully completed the initial and ongoing certification requirements for these designations.

Share with your clients: ChFCHighestStandard.com & CLUHighestStandard.com.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with flame logo)® in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

The American College does not certify individuals to use the CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with flame logo)® certification marks. CFP® certification is granted solely by Certified Financial Planner Board of Standards, Inc. to individuals who, in addition to completing an educational requirement such as this CFP Board-Registered Program, have met ethics, experience, and examination requirements.

*CFA® does not endorse, promote, or warrant the accuracy or quality of the products or services offered by Analyst Success. CFA® and Chartered Financial Analyst® are trademarks owned by CFA® Institute.
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