What is the 4% Rule for Retirement Planning?

Discover the 4% Rule for retirement savings and how to ensure your funds last while enjoying your retirement.

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The best rule for retirement is the 4% rule, which suggests you withdraw 4% of your retirement savings annually to ensure your funds last for 30 years or more. Start by calculating your annual living expenses and save 25 times that amount. This strategy helps balance enjoying your savings while maintaining long-term security. Regularly review your investments to keep your retirement plan on track.

FAQs & Answers

  1. What is the 4% rule? The 4% rule is a retirement guideline suggesting that retirees withdraw 4% of their retirement savings annually.
  2. How do I calculate my retirement needs? To calculate your retirement needs, estimate your annual living expenses and multiply that by 25.
  3. What factors can affect my retirement savings? Factors include your retirement age, life expectancy, investment performance, and inflation.

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