The Popular Retirement Rule Millions Rely On Could Leave Some Seniors Short on Cash
Be careful when following this common guidance.
Overview
Planning for retirement can feel overwhelming. So when there's guidance that makes a certain aspect of it easier, it's natural to want to follow it.
One popular retirement rule that's widely cited is the 4% rule. Developed in the 1990s by financial planner William Bengen, the strategy says you can withdraw 4% of your savings during your first year of retirement and then adjust that amount annually for inflation.
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Details
Source
Originally published at www.fool.com.
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