Skip to content

Ditch the 4 percent rule. Here’s how to handle your retirement withdrawals

June 17, 2017

From the CNBC website

So you have amassed a nest egg large enough to retire. Now comes the hard part: figuring out how much you should withdraw each year to enjoy life and make sure you don’t run out of money.

It can be a difficult balance. Many investors simply use the 4 percent rule. Under this scenario, you withdraw 4 percent per year from a diversified portfolio of stocks and bonds, adjusting annually for inflation, and you will have enough to last for 30 years in retirement, based on historical returns of the U.S. stock market.

The problem with the 4 percent rule

From → Finance

Comments are closed.