You may have heard of the “4% rule” when it comes to retirement.
After you retire, you withdraw 4% of your retirement savings each year.
The truth is, the 4% rule should be viewed as a guide - not as a strict rule.
For example, the rule is based on retiring at age 65.
If you retire earlier, you may want a lower withdrawal rate.
Your lifestyle also matters.
Are you planning to travel the world or spend more time at home?
Consider inflation as well.
A well-built strategy usually includes small annual increases in withdrawals.
But you don’t need to take a raise just because the calendar says so.
So, stay flexible and revisit your plan of withdrawals regularly.
That will give you the best shot at a secure, fulfilling retirement.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor John Dickerson, and Hawes Dickerson. Members SIPC.
