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Decoding the 4% Retirement Rule
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Beyond Financial Planning in Retirement
Overview
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The 4% rule, created in 1994, advises retirees to spend 4% of savings initially, but misunderstandings persist. It's one of many strategies, not foolproof, and alternatives like Spend Safely exist. Anecdotes indicate limited adherence to the 4% rule.
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How can financial advisors better educate retirees on diversified retirement income strategies?
How do different assumptions impact the effectiveness of the 4% rule?
What are the main drawbacks of relying solely on the 4% rule for retirement planning?
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