The Motley Fool Discussion Boards
Investing/Strategies / Retirement Investing
|Subject: Re: Retirement Needs Formula?||Date: 10/5/2013 3:19 PM|
|Author: JLC||Number: 73447 of 75649|
But that assumes you will not take from the principle and thus the retirement fund can last any length and in theory forever.
That's not correct.
The 4% rule of thumb says nothing about invading principal. You take 4% of your initial next egg the first year, then increase the withdrawal for inflation each year afterward.
I always took the 4% rule as 4% of portfolio that year. Rinse, wash, repeat, always taking just 4%. Some years more, some years less.
Hundred ways to skin a cat.
|Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|