[USER]

If you want to withdraw money using the 4% rule what should you be invested in to have a guaranteed 4% return?

what would be your top choices? Are there specific assets, portfolios, or strategies that can sustain this withdrawal rate long-term while minimizing risk?

Share your insights and experiences!

[David]

If you can find a HYSA with 4% interest your principal will never decrease

[John]

My best advice is to look up Bill Bengen’s 4% “rule” He did several studies and outlines the results of several asset allocations and whether they survived a 30 year retirement.

Underscore 30 year retirement… He then went on to look at other withdrawal rates in subsequent studies.

This way you will have the information directly from the source.

[Aaron]

That’s not how the 4 percent rule is intended to work. It’s not that your guaurnteed 4 percent return a year.

The return on the portfolio will vary year to year.

The idea is that you consistently withdraw 4 percent.

[Sean]

Guaranteed 4% returns likely won’t exist for the entirety of one’s retirement, but if they did keep in mind that guarantees you’re losing money every year.

[Matt]

It is my understanding that the Monte Carlo simulation assumes you are invested in large cap stocks and bonds.

[Mark]

That’s not at all what the 4% rule is. Research it

[Trevis]

The study was using a 60/40 stock bond portfolio.
You can use portfolio charts (dot com) and portfolio visualizer (dot com) to back test different portfolios to see how their safe withdrawal rates look.

[Author]

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