By Natasha
The
4% rule of retirement is used to determine how much someone who is retired
should withdraw from a retirement account each year. This rule provides a
steady income stream to the person in retirement while also maintaining an
account balance that keeps income flowing through retirement. The 4% rule of
retirement helps financial planners and people who are retired make portfolios
with a withdrawal rate. Life expectancy plays a very important role while
creating a portfolio because people who are retired that live longer need their
portfolio to last longer so they can cover medical costs and other expenses
that can increase as people age. I think the 4% rule of retirement is a good
idea because it controls how much you can take out of your retirement savings
per year and it's a good way to manage your money while in retirement.
4% rule of retirement: https://www.investopedia.com/terms/f/four-percent-rule.asp https://www.thebalance.com/dont-confuse-these-two-retirement-rules-of-thumb-453920
