The 4% Rule Is Under Fire. Here's Why.
When you sacrifice to build retirement savings, you want that money to last. That's why it's important to manage withdrawals from your IRA or 401(k) carefully.
For decades, financial planners have leaned on a popular rule of thumb to manage a retirement nest egg-the 4% rule. The 4% rule has you withdrawing 4% of your savings your first year of retirement and adjusting subsequent withdrawals for inflation.
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Source Fool.com
