*The Idea:* Withdraw 4% of retirement savings annually to cover living expenses, without depleting portfolio over time
*Assumptions:*
- Retirement savings are invested in a diversified portfolio, such as a mix of stocks & bonds
- The portfolio generates returns, such as dividends, interest & capital gains
- withdraw 4% of the initial portfolio value each year, adjusted for inflation
*Benefits:*
- Provides stable income stream
- Allows us to maintain a consistent lifestyle
- Can help us plan expenses
*Caveats:*
- The 4% rule is based on historical data & may not perform well in all market conditions
- may need to adjust withdrawal rate based on individual circumstances, such as market performance or changes in expenses
- It's essential to review & adjust retirement plan regularly
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
