Summary of “Don’t cheat yourself with the 4% rule”

It’s a rule of thumb that says you can withdraw 4% of your portfolio value each year in retirement without incurring a substantial risk of running out of money.
Unless we see the return of a Great Depression era, followers of the 4% rule “Will most commonly just leave a huge amount of money left over,” says Michael Kitces in his research piece, entitled “How Has The 4% Rule Held Up Since The Tech Bubble And The 2008 Financial Crisis?”.
In addition to being incredibly conservative, the 4% rule does not consider other sources of income you have and the timing of when each source begins.
Why scrimp by only withdrawing 4% of your portfolio while waiting for Social Security? It often makes more sense to withdraw more than 4% during that window of time – yet many retirees won’t do this because the popularized rule of thumb has made them fearful that they’ll run out of money if they don’t follow the rule each year.
It’s much easier to write about a rule of thumb or sensationalize the latest stock market gyration.
Be cautious of a financial adviser who uses a rule of thumb to determine your retirement withdrawal amounts.
There is nothing unprofessional about using a rule of thumb to set broad, general expectations.
Retirement is the biggest financial decision you’ll make and you need a customized plan, not a rule of thumb.

The orginal article.