AAII Home AAII Blog

Wealth and Spending Affect the Success of the 4% Rule

Investor-Update

The success or failure of adhering to the 4% rule depends on a both a retiree’s wealth and consumption. The rule, developed by William Bengen, calls for withdrawing 4% from savings at the start of retirement and then adjusting the amount upward each year in response to inflation. Accounting firm PricewaterhouseCoopers (PwC) says the rule may only work for affluent households.

Read more »

 

Leave a Reply

Your email address will not be published. Required fields are marked *