3 Reasons I'm Not a Fan of the 4% Rule -- and How I Plan to Manage My Retirement Savings Instead
As of 2022, the average American aged 65 to 74 had about $609,000 in retirement savings, per the Federal Reserve. But no matter how much savings you've accumulated for your senior years, it's important to manage that money wisely. And that means stretching it so it doesn't run out.
To that end, you may have been advised by a friend, professional, or words on the internet to stick to the 4% rule when tapping your retirement nest egg. The 4% rule tells you to withdraw 4% of your balance your first year of retirement and then adjust future withdrawals for inflation. If you stick to that plan, your savings have a good chance of lasting for 30 years.
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Source Fool.com