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How To Set Money Boundaries With Your Adult Children
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What Do Most People Not Understand About Being Poor? (34 Eye-Opening Responses)
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People Who Have Experienced Poverty Share What Most People Don t Understand About Being Poor (34 Answers)
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SavingAdvice.com Blog
For many years people relied on the concept of the 4% withdrawal rate to plan for retirement. However, many experts now say that this method is outdated. If you’re planning on using it for your own future, think again. There are better options for a safe withdrawal rate that you need to consider instead.
What Is the 4% Withdrawal Rate?
The 4% withdrawal rate is a percentage that many people use in retirement planning. The idea is that you should plan to withdraw approximately 4% of your retirement account each year once you retire. Obviously, the intention is to allow you to have a steady amount of income to meet your needs in retirement. At 4%, you are supposed to have what you need and yet not max out your retirement savings during your lifetime. While it’s a popular retirement planning method, many experts now agree that this is not a safe withdrawal rate.