Breaking Down The Flaws Of The 4% Rule For Retirement

The four percent rule for retirement dictates that a person should be able to take four percent of the total value from their investment portfolio over time and be able to maintain their principal starting point over a 30-year period and live comfortably in retirement. However, Brett Gotlieb explains that due to lower interest rates and bond yields combined with higher inflation, that four percent rule is outdated. Gotlieb argues that now it should be even less than 3.3 percent, and explains further what long-term investors need to bear in mind for retirement.