There are a few rules that you will want to go without when you retire that have been around for quite a while, and they aren’t the best advice you could be given. The four percent rule, for example, says that you can pull out of your savings at a four percent rate the first year and adjust every year after that. It’s a good starting point, but inflation doesn’t always follow the rules, and you may not be able to pull out as much as you think in retirement.
Key Takeaways:
- There’s a lot of information out there, and it isn’t all good anymore.
- They have been saying four percent can be pulled out in the 90’s but this isn’t sound advice anymore.
- Instead of relying on a percentage of what you will need, factor in other things to really plan well.
“Some experts advise paying off all your debt before you retire, and while that’s not necessarily a bad goal, it could hurt your ability to save.”
Leave a Reply