4 Serious Problems With the 4% Retirement Rule

The 4% rule of retirement is one of the most frequently cited guidelines for retirees to determine a safe withdrawal rate from their savings. The basic concept is that if you withdraw 4% of your retirement savings during your first year of retirement and increase this amount in subsequent years to keep up with inflation, you shouldn't run out of money during your retirement.

While the 4% rule is certainly a handy guideline, it does have several shortcomings that investors should be aware of. Specifically, here are four problems that you need to account for when applying the rule to your own retirement planning.

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Source: Fool.com