Week 44 Day 1: Why 4% Is a Starting Point, Not a Law of Nature

The 4% rule says you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year, and your money will last 30 years with 95% historical confidence. But the study a...

The 4% rule says you can withdraw 4% of your portfolio in year one of retirement, then adjust for inflation each year, and your money will last 30 years with 95% historical confidence. But the study assumed a 50/50 stock/bond portfolio, U.S. markets, 30-year horizons, and historical returns. Change any assumption and the safe rate changes.