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The “4% Rule”, and its flaws

The “4% Rule” is a strategy which says that you should withdraw no more than 4% of your retirement savings (adjusted for inflation) annually to make your nest egg last 30 years. This rule has been around for a long time and is used quite extensively but, according to this Yahoo! Finance article by Maurie Backman, it has some serious flaws which you should be aware of before adopting it. But that doesn’t mean it shouldn’t be used as a starting point; just that you may need to “tweak” it to make it work for you.  Click here to read more.

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