3 Dangerous Pieces of Retirement Advice to Ignore
You've surely been told that saving for retirement is important, but if you follow bad advice, you could wind up setting yourself back. Here are three dangerous guidelines you'd be best to ignore in the course of your planning.
The 4% rule was developed in the 1990s and says that if you begin by withdrawing 4% of your savings balance your first year of retirement and then adjust subsequent withdrawals for inflation, your nest egg should last 30 years.
But the 4% rule makes a lot of assumptions. First, it assumes strong bond yields, which may have been the case back in the 1990s but isn't the case now. Second, the rule assumes a fairly equal mix of stocks and bonds, but if your portfolio leans conservative, your investments may not generate enough of a return to allow for a 4% withdrawal rate.
Source Fool.com
