#4-percent-rule

#4-percent-rule

This is basically a strategy of taking all of the investments you have and withdrawing 4% of the balance during your first year of retirement. After the first year of retirement, you now adjust the dollar amount to withdraw based on inflation. The prevailing idea is that if you follow the 4% strategy, you are not likely to outlive your money for at least 30 years, which is often longer than most people live during retirement.