Retirement's 4% Rule Should Be A Guide Not A Rule
In retirement, you’ll be living off the proceeds of your retirement account. The 4 percent rule suggests that you should be able to withdraw an inflation-adjusted 4 percent and not run out of money over a 30-year retirement.
However, instead of holding fast to a set inflation-adjusted withdrawal rate, investors should treat such “rules” as flexible guidelines.
In this article, I explain why retirement's "4% rule" should be considered more of a guide than a hard and fast rule.
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Retirement’s 4% Rule Should be a Guide Not a Rule
Jens Winkelmann is trying to figure out where he and his wife want to retire. They recently ordered a 4x4 camper van. They plan to retire in 2025 when Jens is fifty-eight and spend several years exploring Europe, North America, Central America, and South America in their van. Once they hit the road,…