From Investopedia: The 4% Rule is a practical rule of thumb that may be used by retirees to decide how much they should withdraw from their retirement funds each year. The purpose of adopting the rule is to keep a steady income stream while maintaining an adequate overall account balance for future years. The withdrawals will consist primarily of interest and dividends on savings.
In this episode I discuss the origins of the 4% rule and whether it still makes sense for retirees. I give you some alternative ways to think about retirement income.
