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This could be Social Security benefits, a pension, or alimony. The remainder is the amount you'll need to cover on your own. One popular strategy says to multiply this remainder by 25 (the 4% rule).
A pair of glasses, a pen, and a calculator set atop a Social Security benefits application form. Image source: Getty Images. Statistically speaking, there is a superior claiming age for most retirees
A pair of glasses, a pen, and a calculator set atop a Social Security benefits application form. Image source: Getty Images. The data doesn't lie: There is a statistically superior claiming age
The rule is simple: your balanced retirement portfolio should last you 30 years if you withdraw 4% in the first year and then adjust the amount each year after that based on inflation.
The 4% retirement rule doesn't account for investment fees or taxes. Investment fees charged by financial advisors or mutual funds can eat into your returns and shorten how long your portfolio lasts.
The 4% rule was developed in the 1990s by financial advisor William Bengen. According to Bengen, people could withdraw 4% of their retirement savings in their first year and then adjust annual ...
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