What is the 4% rule?  It is the magic formula for early retirement.  Make your money work for you while you no longer have to work. If you want to retire way before 65, listen up.  This is how you can do it.

The 4% rule is a benchmark that can be used to calculate how much money to withdraw from your retirement accounts every year for at least thirty years without depleting those accounts and outliving your money.

In 1994 William Bengen, a financial planner published a study showing the results of testing a number of rates of withdrawal based on historical rates of return. Bengen concluded that 4% was the highest rate that could be withdrawn for at least 30 years without running out of money.

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Show Notes

The Four Percent Rule:  Calculate how much you need to apply the rule.

Betterment:  Start investing today.

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