The Retirement Withdrawal Rate Is Being Revised. How to Keep the Cash Flowing for Decades.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 06 2024
0mins
Source: Barron's
Revising Withdrawal Rates: New research suggests that retirees can safely withdraw 5% from their portfolios annually, challenging the long-held 4% rule, with experts emphasizing the importance of investment strategy and market conditions.
Investment Strategy Recommendations: A bucket strategy is advised for managing withdrawals, dividing assets into cash for immediate needs, income-generating investments for intermediate expenses, and growth-focused investments for long-term growth, while also considering potential healthcare costs in retirement.
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Analyst Views on T
Wall Street analysts forecast T stock price to rise
15 Analyst Rating
8 Buy
5 Hold
2 Sell
Moderate Buy
Current: 20.580
Low
20.00
Averages
28.27
High
33.00
Current: 20.580
Low
20.00
Averages
28.27
High
33.00
About T
AT&T Inc. is a holding company. The Company is a provider of telecommunications and technology services globally. The Company’s segments include Communications and Latin America. The Communications segment provides wireless and wireline telecom and broadband services to consumers located in the United States and businesses globally. The business units of the Communication segment include Mobility, Business Wireline, and Consumer Wireline. Mobility provides nationwide wireless service and equipment. Business Wireline provides advanced Ethernet-based fiber services, Internet Protocol (IP) Voice and managed professional services, as well as legacy voice and data services and related equipment, to business customers. Consumer Wireline provides broadband services, including fiber connections. Consumer Wireline provides legacy telephony voice communication services. The Latin America segment provides wireless services and equipment in Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Overreaction: Wall Street analysts believe the recent sell-off in U.S. telecom stocks is excessive, with expectations for a relief rally driven by strong upcoming earnings reports, particularly as BofA upgraded T-Mobile to a 'Buy' rating with a $220 price target.
- Urban Market Advantage: T-Mobile holds a 50% household share in major urban areas like New York and Los Angeles, compared to just 24% in rural regions, providing a significant geographic advantage against satellite competition and reducing near-term threats.
- Satellite Competitive Pressure: While SpaceX's deployment of V3 satellites poses long-term pressure on the telecom sector, analysts argue that the immediate competitive threats are overstated, especially in urban markets where satellite direct-to-device capabilities face severe physical constraints.
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See More
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- Stock Decline: AT&T's shares have fallen 17% this year and are trading near a 52-week low, despite strong financial performance, indicating market concerns about future growth, particularly with SpaceX's Starlink potentially capturing market share.
- Upcoming Earnings: The company is set to release its second-quarter earnings on July 22, with hopes that strong results could alleviate investor fears, although AT&T forecasts only low single-digit growth in service revenue, reflecting limited growth potential.
- Attractive Valuation: With a price-to-earnings ratio of 7, significantly below the S&P 500 average of 25, AT&T presents an appealing valuation for investors, especially with a dividend yield around 5.4%, making it an attractive buy.
- Long-Term Investment Opportunity: Given the sharp decline in stock price, AT&T may represent a low-risk investment for long-term investors, particularly as the market may be overreacting to risks from Starlink, suggesting that buying now could yield favorable returns.
See More
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- Stock Decline: AT&T's stock has dropped 17% this year and is nearing multi-year lows, primarily due to concerns over SpaceX potentially capturing market share, which poses a challenge to the company's stability.
- Strong Financials: Despite the stock's decline, AT&T's financial performance remains robust, with first-quarter revenue up nearly 3% year-over-year; however, the company forecasts low single-digit growth for service revenue this year, indicating sluggish growth prospects.
- Attractive Dividend Yield: With a current dividend yield of approximately 5.4%, AT&T's low valuation may present a good buying opportunity for investors, especially ahead of the upcoming earnings report, amidst pessimistic market sentiment regarding its future growth.
- Market Overreaction: Although the market has reacted strongly to the potential threat from Starlink, AT&T's low price-to-earnings ratio of 7 is significantly below the S&P 500 average of 25, suggesting the company may be undervalued, making it a potentially low-risk buy for long-term investors at this time.
See More
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- Significant Contract Value: SpaceX's contracts with AI companies like Anthropic and Alphabet are valued at approximately $28 billion, showcasing its strong competitive position in the rapidly growing AI market while laying the groundwork for future revenue growth.
- Broad Market Opportunities: In its IPO registration statement, SpaceX highlighted a total addressable market of $26.5 trillion for its AI business, including a $2.4 trillion infrastructure market, indicating potential for business diversification through expansion into solar-powered orbital data centers.
- Starlink Business Growth: Despite a net loss of $5 billion in 2025, SpaceX's Starlink connectivity business generated $4.4 billion in operating income, demonstrating a doubling of both subscribers and profits while lowering prices, thereby strengthening the company's market position.
- Wireless Service Expansion Plans: SpaceX is reportedly planning to launch mobile services in the U.S., potentially partnering with Charter Communications to leverage its internet infrastructure and mobile virtual network agreement with Verizon, further expanding its market share and enhancing profitability.
See More
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- AI Market Potential: SpaceX's IPO filing indicates a total addressable market of $26.5 trillion for its AI business, including a $2.4 trillion infrastructure market, suggesting significant growth potential as the company aims to expand into solar-powered orbital data centers.
- Starlink Business Performance: Despite reporting a net loss of $5 billion in 2025, SpaceX's Starlink connectivity business generated $4.4 billion in operating income, demonstrating the effectiveness of its pricing strategy as both subscribers and profits more than doubled.
- Wireless Service Expansion Plans: SpaceX plans to launch mobile services soon, targeting the $1.6 trillion wireless phone market, potentially enhancing its competitive edge through a partnership with Charter Communications to leverage its network infrastructure.
- Investor Focus: While the profitability of SpaceX's AI segment remains uncertain, investors should pay attention to the connectivity business's potential, with projections suggesting that Starlink could generate $120 billion in revenue at a 60% operating margin by 2036, indicating a stronger growth outlook.
See More
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See More
