A commonly accepted guideline indicating the appropriate amount to withdraw annually from a retirement account. When using this rule, a retiree is expected to withdraw enough to cover current lifestyle costs while maintaining an account balance that will provide income for several years. The 4% should come from interest and dividend income credited to the account.
Related information about four percent rule:
- Four Percent Rule Definition | Investopedia
The four percent rule seeks to provide a steady stream of funds to the retiree, while also keeping an account balance that will allow funds to be withdrawn for a ...
- Using the 'Four Percent Rule' for Retirement Planning - The Smarter ...
Oct 4, 2012 ... Financial planning is full of rules of thumb. One of the most famous is the "Four Percent Rule," which simply says that in retirement you can ...
- Is the 4% Rule Still Viable? - SmartMoney.com
Feb 7, 2012 ... Ruffenach: A fresh look at the 4% retirement-withdrawal rule.
- Cheryl Krueger: "4% Rule" Serves as Guideline for Today's Retirees ...
Apr 4, 2012 ... The four percent rule helps people quickly decide when they'll be able to ... It's important to note the four-percent rule has drawbacks typically ...
- The 'Four Percent Rule' for Dividend Investing in Retirement ...
Mar 31, 2010 ... The four percent rule is commonly used by financial planners in order to estimate the optimum amount of money to withdraw from client ...
- Retirement Reality Check: What Does the Four Percent Rule Mean ...
Apr 18, 2012 ... If having a portfolio large enough to follow the four percent rule seems out of reach, don't panic. Instead make a commitment to save, save, ...
- Four-percent rule a relic, advisers say - InvestmentNews
Apr 30, 2012 ... More flexibility with withdrawal rate needed; emerging-markets investments change assumptions.
- The Four-Percent Rule | This user's experience
Oct 22, 2012 ... In Money for Something, we talk about viewing wealth in terms of the income it can generate. This handy rule can also be used in reverse!