Saturday, February 10, 2018
"The 4% Rule": How much money do you need for the rest of your life?
I “retired” in terms of my old IT career ending at the end of 2001, at age 58. I had about three times my annual salary saved in liquid assets (at the time I owned no real estate).
I got lucky, somewhat, with family circumstances nine years later with the passage of my mother and the creation of a trust. The total amount under my control is about 14 times what that annual income had been.
Still Anne Tergesen’s piece on p. B5 of the weekend Wall Street Journal, p. B5, “It’s time to rethink some common beliefs”, with some particular attention to the 4% rule, which is supposed to make a million dollar nest egg last for 30 years.
In an increasingly unstable world, that may be risky.
Also, hear this (after the volatility in the past week on Wall Street), on how dangerous some investing is, even after the 2008 fiasco with credit default swaps and derivatives.