All posts tagged: 4% withdrawal rule

What Does the 4% Withdrawal Rule Mean?

Wikipedia says “The 4% refers to the portion of the portfolio withdrawn during the first year (of retirement); it is assumed that the portion withdrawn in subsequent years will increase with the consumer price index (CPI) to keep pace with the cost of living.”  Your investments will pay dividends and appreciate in price over time on average at 7% per year before inflation. The inflation rate …