Retirees Adjust to New Withdrawal Rates

Reading

Read this text and listen to it at the same time. If you don’t know a word click it to see explanation, hear pronunciation or add it to vocabulary.

Retiring now is different from the past. The economy and market may not be the same. Morningstar found a new safe rate to take money out.

Amy Arnott is a Morningstar expert on money. She talked about the research on taking money out. It is important to know how much you can take.

Saving money is easy if you start early. But, using your savings is hard. You might run out of money or not spend enough.

Old ideas used past data to find safe amounts. William Bengen studied data back to 1926. He found the 4% rule, but this new plan looks to the future.

The plan makes sure you get a steady payment. It takes 4% at the start. This payment is raised each year to match higher prices.

Answer the questions to the text. Speak or write, you choose. AI will assess your answers.

How is retiring now different from the past?

The economy and market may not be the same.

Who is Amy Arnott?

Amy Arnott is a Morningstar expert on money.

What is the 4% rule?

The 4% rule is a guideline for how much money you can safely take out of your savings each year.

Look at the article image and describe what you see on it. You may either speak or write your answer there.

Discuss this article with your AI tutor to practice. Your tutor will help you with vocabulary and grammar.

Read a new article every day and
discuss it with AI at lingolette.com