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Why it's 4% a safe withdrawal rate? Is it safe in the current economic context? Isn't affected by inflation?


Taking out 4% is usually considered the safe bet on keeping the original money at the same value year after year with the remaining excess returns accounting for inflation.

Even if that amount is too much for 2022 and 2023 due to higher inflation, during other years, it will be too conservative. So it evens out. Plus there’s recessions too. So the 4% is an average.




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