[Cortland]

The 4% rule is what you withdraw and also a savings account offering 4% is not permanent.

[Gerald]

No that would be idiotic. Nobody is offering a 7% guaranteed return for 50 years which is what would be required to provide 4% plus 3% inflation. As soon as a bank offers a 50 year 7% note backed by the us government or FDIC wake me up.

[Aaron]

Nope not going to be doing that. Others have outlined the answers – main reason Is that the 4 percent rule is not based on your money returning 4 percent in the investments.

[Andrea]

That 4% will be short lived.

[Mike]

The rule assumes you make 6-8%, and only withdrawal 4% of it, so you’re always outpacing inflation and making up for down years in the market.

You can’t just make 4% and take out 4% because you’ll be buying less stuff over time.

Also, savings accounts will not average 4% over the long run. Once the fed cuts the rate, it’ll drop.

[Author]

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