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Subject:  Re: Are You Saving Too Much for Retirement? Date:  2/2/2007  7:32 AM
Author:  lizmonster Number:  128 of 73677

Why 4 percent, precisely?

AFAIK (and I will admit I haven't read the info myself, although DH has), analyzing data over a long period of time (something like 100 years - intercst, I apologize for butchering your research!) reveals that - no matter how lousy the economy was in any particular year - 4% would have been a safe rate at which to withdraw money from one's savings to ensure that one did not approach $0 (in 40 years, I think?). Certainly it's a conservative approach, but if you're not overly optimistic about the economy (we're not), it can help you sleep at night.

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