My understanding of the 4% rule is that you can retire when your yearly drawdown is 4% of your savings. The theory being, market pays 7%, inflation is 3%, so 4% is "sustaining". High level summary obviously.
Please correct that if I'm wrong.
If that is correct, this seems to bake in a huge assumption: that you want to die with all your retirement savings for a kid of next of kin or something. What if you are OK with dying with less money than you retired with? Half? Or even 0? Is there a model that allows you to "adjust" the 4% rule based on what percentage of your initial retirement savings you are looking to leave behind?
Submitted May 10, 2018 at 03:47PM by counterweight7 https://ift.tt/2rxbX4U
