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What is the 4 percent rule?

RetirementWarren Team

Quick answer

The 4 percent rule says retirees can safely withdraw 4% of their initial portfolio in year one, then adjust for inflation each subsequent year, with a high probability of not running out over a 30-year retirement.

4 percent rule example: $1M portfolio yields $40,000 first-year withdrawal.
4 percent rule example: $1M portfolio yields $40,000 first-year withdrawal.

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