A while back, I described the “4% rule.” This is a popular way to think about portfolio withdrawals in retirement—but it isn’t the only way. Another approach, called the “bucket” system, is also worth understanding. Below is some background on this alternative approach. What is the bucket [...]
Is 4% right for you?
The 4% Rule is one of the most well known ideas in personal finance. But is it really a rule? And does it apply to you? Let’s start at the beginning. The father of the 4% Rule is a financial planner named William Bengen. Back in the early-1990s, he became frustrated with the prevailing rules of [...]