“You’ll be fine if you can withdraw less than 4% per year from your (retirement accounts) to make ends meet.
But you’ve got problems if you need to withdraw more than 4% per year. You’re living beyond your means. Taking out more than 4% increases the odds that you’ll run out of money later in life.”
Robert Powell, personal finance journalist, USA WEEKEND,
♦ For our previous blog post and more background on the 4% rule and why financial planners still consider it a good rule of thumb, see “The Top 10 Personal Finance Rules to Live By” by journalist Craig Guillot on Mint.com, or “How to start saving in your 50s,” also by Craig Guillot, from Interest.com.