Rethinking the 4% Rule in Retirement

This chapter critically examines the 4% rule for retirement spending, discussing its limitations and the emotional challenges retirees face when transitioning from saving to spending. It highlights how the rule's creator has shifted his perspective in light of modern economic conditions, emphasizing the need for flexible financial strategies. By focusing on the psychological factors influencing retirees, the chapter advocates for a more adaptable approach to managing retirement portfolios amidst market volatility.