You probably know about the “4% rule.”
Studies show that retirees should be able to withdraw an inflation-adjusted 4% per year (based on their account value during their first retirement year).
But recently, I’ve warmed to something else. With this new method, a retiree’s money would have lasted more than 40 years…. even if they began on the eve of history’s biggest market crash (1928).
You might think I’m talking about withdrawing just 3% per year. But no… this goes the other way.
With a couple of simple rules (that make a lot of sense) retirees should be able to withdraw an inflation-adjusted 5% per year.
That’s a 20% income boost, compared to the 4% rule.
Intrigued? Find out more! Read my full AssetBuilder story below.
How Retirees Can Withdraw More Than 4 Percent Per Year
Elizabeth Shaw and Charlie Holloway were digging around in a Scottish cave. They discovered a special map that, they hoped, held the key to the origin of life on Earth. It was one of the earliest scenes in the science fiction thriller, Prometheus. And their discovery was a bit like the 4 percent …
