No. of Recommendations: 2
One would hope that people keep in mind the 4% "rule" is only a guideline. It allows a basis to estimate the assets needed for retirement. And if your investments make 8% return, it works quite well.

But the markets are cyclical. In good times, 4% in a good number. In bad times 4% seems way too low. But we hope the cycles will continue making 4% a good average for estimation purposes.

Of course having surplus assets over the 4% minimum is a great idea. Then the precision of the number becomes less important.

People who see 4% as a rule, are in danger of misusing the number.
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