Retirement

4% Rule

The 4% rule suggests you can withdraw 4% of your portfolio annually in retirement without running out of money over 30 years. A $1M portfolio = $40,000/year. It's a guideline, not a guarantee—adjust for your situation.

Example

Retire with $1.25M; 4% = $50,000/year safe withdrawal.

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4% Rule — Definition & Example | Investors Lab | Investors Lab