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Yet another financial adviser is unable to correctly describe the 4% rule. Worse, the financial journalist used the quote anyway:

This (4% rule) has its detractors, too. Harold Evensky, chairman of Evensky & Katz, a Coral Gables, Florida, financial advisory firm, says that retirees using this retirement income strategy must deal with inconsistency. "They are not getting a consistent cash flow. They never know, even from one day to the next, what the cash flow is going to be because dividends and interest rates are constantly changing. So it's a nonsensical way to plan."

Paula Hogan, CEO of Hogan Financial Management, a Milwaukee financial advisory firm, points to another shortcoming. She says, during the financial crisis, "people who had their base standard of living covered with inflation-protected income and then put at risk in the market what they were able and willing to lose were fine. People who had money that they needed for groceries in the market were not fine."
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