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The 4% Rule
has been a widely accepted
rule by most financial advisors
with the proper allocation of retirement funds
that you're withdrawing an income from
that you can take 4% for your retirement accounts annually without running the risk of
running out of money
That rule has been widely challenged today through
numbers of different studies because of the low interest rates
in the bond market, low bond yields
and a volatile stock market -- The 4% Rule has been challenged
to be as low as 2.5 to 3 percent ... is really a safe number
that you won't run out of money
if you're taking 2-3% from your retirement account. Well that doesn't cut it
for most people
that's way too low of a number to withdrawing
most people can't live on that. 3 percent is an
extremely low
withdrawal rate for most people. They can't supplement their retirement
just drawing 3% out. An annuity
depending on the contract-- with a fixed indexed annuity
and most income writers you can draw
between 5-7% from your retirement account and
have contractually guaranteed that you will never
never run out of money.