Saturday School: What Is the 4 Percent Rule?

Advertising Disclosure: When you buy something by clicking links on our site, we may earn a small commission, but it never affects the products or services we recommend.

Withdrawing money
Tatiana Popova / Shutterstock.com

Financial advisers often talk about the 4 percent rule when discussing how much money you can safely withdraw. But why is that magic number so important?

Watch this video from Video School Online to learn about the so-called “safe withdrawal rate,” and why it is crucial to employ this strategy, particularly if you are in retirement.

For more about building a solid nest egg, check out “Ready to Rescue Your Retirement in 2018? Here’s How.”

Are you comfortable with the amount of money you withdraw from savings and investments? Let us know why or why not in comments below or on Facebook.

Get smarter with your money!

Want the best money-news and tips to help you make more and spend less? Then sign up for the free Money Talks Newsletter to receive daily updates of personal finance news and advice, delivered straight to your inbox. Sign up for our free newsletter today.