How 2020 Broke Retirees' 4% Rule

How 2020 Broke Retirees' 4% Rule

If you're planning for retirement, you may have heard of the 4% rule. The rule says you can safely withdraw 4% of a retirement portfolio's balance in the first year of retirement, then adjust the withdrawal for inflation every year after that. The model assumes a steady 50/50 split between stocks and Treasury bonds.