Tag Archive: 4 percent rule

The 4% rule

4-percent-rule-retirement-planning

One of the retirement strategies; comes from a paper written in 1998 by three finance professors at Trinity University. Idea was to study & identify, as to what rate of withdrawal is an ideal rate per year, which is sustainable to the retirement corpus, and can last 30 years.

How the 4% rule works?

To figure out how much money you need for your retirement corpus, multiple 25 with the annual retirement income (you wish that point of time). Let’s say you need 10 lacs per year.

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