With 80 percent to 90 percent of his clients spending on a sustainable level, Butler says, he has periodic reviews with clients every six months or so to adjust the withdrawal rate if necessary.
“I look at how inflation is impacting the client’s cost of living and look at their investment returns. If it is a bad investment return year, such as 2008, I encourage them to cut back on discretionary spending to minimize the withdrawal rate and give the portfolio time to recover.”