How Taxes and Debt Upend the 4 Percent Retirement Rule
The overused and oversimplified 4 percent rule is misused so often that it's important to understand what it means, particularly as it relates to inevitable large single event expenses or tax and debt payments. The 4 percent rule implies that a new retiree can spend 4 percent of the retiree's savings the first year and increase that amount by last year's inflation until death, at which point the savings will be nearly exhausted.
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