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What Is the 4% Rule?

Is it the best approach withdrawing from your retirement accounts?

By Matthew Frankel, CFPUpdated Dec 6, 2025 at 12:17 PM

Key Points

  • The 4% rule allows 4% withdrawal of retirement savings initially, adjusting for inflation annually.
  • This rule assumes a portfolio mix of 60% stocks and 40% bonds and consistent spending.
  • Market fluctuations and different investment mixes can affect the 4% rule's reliability.

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