Relying on the 4% Rule in Retirement? In These Situations, You Shouldn't
Summary
The article challenges the automatic use of the 4% withdrawal rule. She argues that retirees who retire very early, retire late, or anticipate enormous upfront costs may find the rule fails them. For early retirees, a 4% withdrawal rate may deplete savings too soon, while late retirees may be able to withdraw more safely. In the early years, significant expenses such as home renovations or funding a child’s wedding may necessitate flexibility in withdrawals. Backman urges readers to tailor withdrawal strategies to their unique horizons and goals, rather than rigidly applying a 4% rule.
The Motley Fool
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