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RE: The 4% Retirement Rule and How it Works

in #money8 years ago

Yeah for younger people, you will need to save much more through the 4% rule if you plan on using it. So instead of 1 million you might need to save 1.3 million to account for no pension or social security. Inflation rates are fine with the money invested because bonds and stocks will almost always reflect the real inflation rate. The bigger problem would be if you had money in just cash.