On the 4% rule

Is the 4 Percent Rule Still Relevant for Retirees?


It's useful to know that initially withdrawing 4 percent of your retirement savings would allow most people to avoid running out of money through all kinds of historical scenarios. But with bond and stock returns now excepted to be lower than historical averages, it's prudent to shine the spotlight on the safe withdrawal rule to make sure retirees are still being conservative by withdrawing 4 percent of assets. Perhaps the safe number is now 3.5 or 2.8 percent.
Comment: I think we are going to start with a 3% rule and see how that goes.

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