one of the most common retirement planning
questions people have is how much money can I pull from my portfolio every year and live on
in retirement and that's where the four percent rule comes in handy and it basically says that
if you can pull four percent or less from your Diversified portfolio invested in things like
stocks and bonds and live off of that amount while keeping the rest invested then there's
a good chance that your money is going to last 20 30 years or more and as a frame of reference
if you had a million dollars then four percent would be forty thousand dollars if you had
five hundred thousand dollars it would be twenty thousand dollars per year and it's not
set in stone it is based off a study that was done many years ago and has held up well over
time but there are instances where people as they get older could pull more or if they retire
early maybe they want to consider even doing less than that but it's a really good way to get
a frame of reference on looking at how much you've saved and what that can translate
into in retirement as far as income goes