Following This Long-Trusted Retirement Rule Could Wreck Your Senior Years
You're no doubt aware that it's important to save well for retirement, since Social Security will only pay you a limited amount of money each month and you'll generally need income outside of those benefits to maintain a comfortable lifestyle.
But entering retirement with a large pile of cash isn't enough. You'll also need to manage that money wisely, and that's where the 4% rule comes in.
The 4% rule states that if you begin by withdrawing 4% of your nest egg's balance your first year of retirement, and then adjust subsequent distributions for inflation, your savings should last for 30 years. And if you retire in your mid-to-late 60s, that covers you for a period that exceed today's average life expectancy.
Source Fool.com
