7 Things You Probably Don’t Know About The 4% Rule

The 4% Rule seems so simple. Multiply your savings by 4%, and that’s how much you can spend the first year in retirement. After that, adjust your spending by the reate of inflation. It’s simple, right? Not so fast.

While many people nearing retirement have heard of the 4% Rule, few have read the 1994 paper that gave us this rule. Read it carefully, and you’ll learn some surprising facts about this ubiquitous retirement rule of thumb.