3 Big Misconceptions About the 4% Rule You Need to Get to the Bottom Of
It's important to understand the rule before you're ready to use it.
Overview
So you've done the hard work by saving for retirement consistently and investing your money for growth. Now, as retirement nears, it's time to start thinking about tapping your IRA or 401(k) for income. And it's important to have a solid withdrawal strategy to help your money last.
To that end, the 4% rule may be a good plan to follow. The 4% rule tells you to withdraw 4% of your savings your first year of retirement and adjust future withdrawals for inflation.
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Originally published at www.fool.com.
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