𝐃𝐨𝐞𝐬 𝐭𝐡𝐞 “𝟒% 𝐑𝐮𝐥𝐞” 𝐫𝐞𝐚𝐥𝐥𝐲 𝐰𝐨𝐫𝐤?
“The 4% Rule,” invented by a financial advisor in the mid-90s, states that if a retiree has a retirement portfolio of 50% stocks and 50% bonds then they should be able to withdraw 4% of their portfolio each year plus an adjusted amount to account for inflation without exhausting their portfolio in retirement. Although “The 4% Rule” (or theory) may provide a predictable and easy to follow withdrawal process, it ignores many financial implications that can affect a retirement portfolio,