This Once-Outdated Retirement Rule May Now Be Getting a Revival
In an ideal world, you'll end up kicking off your retirement with a decent chunk of money in savings. But it's really important to manage your savings wisely.
If you withdraw randomly from your 401(k) or IRA, you might end up depleting your savings in your lifetime. At that point, you may be forced to live on just Social Security, which is far from optimal seeing what little replacement income it tends to offer, especially for higher earners.
That's why it's essential to come up with an annual withdrawal strategy for your 401(k) or IRA, rather than simply tapping it whenever you please. And for many years, the 4% rule was regarded as the rule of thumb to follow.
Source Fool.com
