Most of us know that we need to be socking away a lot of dollars for retirement, and many of us are doing so. It’s hard to know how much money we will need, though, which makes it hard to know how much we have to save and accumulate. We don’t want to save too little and run out of money — but we’d rather not save more than we’ll need, too.
There’s a simple but imprecise tool that can help with your retirement income planning — the “4% rule.” Take some time to learn what it is, why it’s problematic, and how it can still be useful.
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