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The 4% Rule for Retirement (FIRE)

Published on 9/14/2018 by Ben Felix
If you have spent any time researching retirement planning online, you have heard of the 4% rule. If you haven’t heard of it, the 4% rule suggests that if you spend 4% of your assets in your initial year of retirement, and then adjust for inflation each year going forward, you will be unlikely to run out of money.

While it is simple and elegant, the 4% rule is probably not the best way to plan for retirement, especially if you plan on retiring early.

I’m Ben Felix, Associate Portfolio Manager at PWL Capital. In this episode of Common Sense Investing, I’m going to tell you why the 4% rule is not a rule to live by.

#retirement #finances #investing

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