How can you spend 4% of your nest egg when you earn 2%? Advisors' 4% rule is NOT a "safe withdrawal" amount. Advisors' expensive deferred annuities don't work. Annuity guarantees are just not worth the price. Fixed income returns are volatile-compare alternatives. Create a Tax-FREE inflation-proof account for growth. In 1994, Bill Bengen's 4% solution to the 30-year retirement income problem was the perfect answer to a client's question: "How much can I withdraw from my investments so I don't run out of money during retirement?" 4% was the quick answer for simplistic advisor plans. It saved advisors from developing a plan that matched our "lifestyle," given the unpredictability of the market. All our advisor had to do was buy 10-year Treasuries, which were yielding 8%. The 4% retirement income rule was wrong. Now academics say that advisors can't use the 4% rule anymore-Now it's 2.5%. Obviously, neither of them are actually living on retirement income of 2.5% of their pensions. Talk is cheap. They fail to mention that we will need a retirement fund 50% GREATER for the same income amount. Also, Bengen did not know that our current Social Security benefits will end in 2033. He did not know that our income taxes will increase to pay off two wars, two tax cuts and two bank bailouts. He did not know that people will be retiring early and probably live into their 90's. He did not know that, starting in 1997, people could compound earnings in a tax-FREE account. Today you can make sure you are protected by creating a guaranteed inflation-proof income stream of low-cost annuities to exactly match your needs. You need to enter the last 30+ years of your life knowing how you are going to obtain income. You need a realistic and flexible plan. Two-thirds of pre-retirees don't have a clue. Financial advisors favor high-cost products. You need less-biased information to find the best alternative for you. Let's look at the alternatives.