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Saturday, May 9, 2015

The NY Times and the 4% Rule

The NYT has a very interesting article on the debate over the "4% rule" and the issue of what is the "correct" amount that can be withdrawn from a retirement nest egg without running out of money.

The "correct" response is "it depends". Once again proving that finance is not physics. There are so many variables and imponderables that not only is there not "one answer" there must be adjustments made along the is the case in some of the approaches discussed. Just like the expert in the article it makes sense to work with a professional on an ongoing basis.

I would say two things. One will never go wrong spending less and saving more.  And "stuff happens' both pre and post retirement making precise plans based on one "answer: basically useless.

Nevertheless a good read here

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