Beware of Wall Street “wisdom” now more than ever. Especially when it comes to the most commonly quoted maxim for retirement: it’s based on a rule that was never designed for times like these!
I’m talking about the so-called “4% rule,” which says you should sell 4% of your nest egg every year in retirement.
Sounds simple, right?
Trouble is, it slashes your income stream and caps your upside in one go! It’s especially dangerous advice to follow in a downturn like the one that’s hit us in the last few months.
Let’s say, for example, you own $200,000 worth of Cisco Systems (CSCO) shares.… Read more