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The 4% rule for retirement savings desperately needs to be modernized - MarketWatch

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The 4% rule for retirement savings desperately needs to be modernized

By Angie O'Leary
Published: July 21, 2018 10:03 a.m. ET


Most people will need to adjust their withdrawals up or down as they move through retirement

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The longstanding 4% rule was developed in the mid-1990s to answer the question, “How much can I safely withdraw from my retirement savings each year and have my nest egg last for the duration of my retirement?”

While this simple rule of thumb still stands strong despite numerous studies designed to prove it inadequate, it is important to understand the original assumptions that went into creating the rule and then take a modern view to get a more comprehensive answer to that important question.

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