4% rule

I don't think by the time I get to retire there will be any assistance left for us, but we hope there will be something.

Yes, I think it is possible. The catch is still adding to your investment each year. The investment has to be rather large before taken anything out won't have any effect.

Thank U so much for information of this new aspect..I did not know about this ...let me think it out..bye

your discussion is great...in your discussion you have taken a good issue..

i think that u are right and i will definately think abt this..

No I do not think this will work. If your investments are low and you withdraw 4% but do not put more than that back in or if the investements do not draw more than 4% you will be left with nothing very quickly. The investments are the most important part of this, what if you invested in something that did not yield your expectations but instead lost for that one year. Could you go without your 4%? No you could not therefore you would deplete the portfolio for one and could never recoup that loss unless you got real lucky. This is like playing a slot machine to rely on the 4% rule. It is best to make money now and save it on your own without banks being involved, you know like the old saying goes, bury it in your back yard for a rainy day kind of thing.

Are you talking about the funds you have when you retire and the amount you withdraw from those funds after retirement? If so, everyone is aware that the cost of living increases every year and so it is necessary to add to the original capital amount saved in order to maintain the living standards you enjoy. That means you should not withdraw all the earnings each year, but instead reinvest some of them to allow for greater earnings in successive years. I am not sure of the actual percentage, because it depends on the cost of living in any particular country. However, I would think that the minimum of 4%, but possibly a little more would be better. For example your income from investments is say $25,000 per annum, so the first year you only spend $24,000 and reinvest the extra $1,000 which means income in following years is higher.

I haven't thought about retirement.

I am very sceptical about anything to do with retirement funds personally! I can't see how any of us (unless we started saving from the day we were born!) will actually have enough money to survive on by the time we retire. It's something that is really worrying me. There are so many 'rules' and 'schemes' regarding retirement and penions that you just dont know whether you're coming or going! I would have to say that I am a little guarded with respect to believing it!

Yeah I guess,in fact I believe saving more or less don't matter,as long as having some money saved in the bank is fine.

I can see the logic in this, but surely the 4% rule would have a different numerical value each year according to the current rate of inflation. The only sure way to enable growth would be to wait until the end of the year and calculate how much of the interest you need to leave alone and spread the balance over the coming year.

I do not believe that the 4% rule will work for me due the cost of living increasing every year. It is going to be difficult to save money now a days and paychecks get smaller because of the rise of healthcare costs.

hehe, first time heard of that, will keep it in mind and keep an eye on that.

no i do not believe in this, in todays world when inflation is growing in such a steep rate and international economy is changing its course so wildely, you can never be comfortable by mere 4%

I think it certainly shouldn't hurt. I think everyone should save, and invest if they can! Not sure there's a set amount, but something is much better than nothing :)) And something cannot grow from nothing.

Sounds a bit low, but better than nothing

very good.

I have never heard of this rule buy I am curious about it. I think that time would play a major factor in retirement because if I saved a ton of money and then didn't last very far into retirement I wouldn't need the money, but with people living longer now it may be needed even more

Sounds like it could work IF your investments are earning more than 4%, and IF they average that rate of return each year. If the money is in a stock market index fund, for example, the investment could decline 20% or more in one year. The U.S. stock market historically has averaged well over 4%, but it's had its ups and downs. If you're an elderly person you might not live long enough to recoup your losses. It all depends on the investment.

oh thnx buddy for this information bt i m nt doing any work now bt thanx for future....