SAJ-99
Well-known member
I think that is was just doing simple division to make it easier for people. I agree that high inflation, which is unpredictable, changes the math a little (a lot actually). Here is an interesting article.With inflation that is not really how it works for a retiree. But as Buzz mentioned, 3-4% should allow inflation-adjusted withdrawals throughout retirement without depletion. Assuming properly balanced investments and historical returns.
![www.fool.com](/proxy.php?image=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-599792484_kKNwMuZ.original.jpg%3Fwidth%3D1200%26crop%3D2%3A1%2Coffset-y0&hash=b9f73cb7c372d71f582db9ad0303a548&return_error=1)
Why the Creator of the 4% Retirement Spending Rule Says It No Longer Works
The combination of high inflation and economic conditions could require revisions to the popular retirement rule of thumb. Find out more.
![www.fool.com](/proxy.php?image=https%3A%2F%2Fg.foolcdn.com%2Fstatic%2Faffiliates%2Fproject%2Fimages%2Ffavicon%2Fandroid-icon-192x192.png&hash=aa2afdb5db69e266b20455274bca0490&return_error=1)