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Showing posts from October, 2020

3 Outdated Retirement Rules That Could Cost You

Most people want to save as much as possible for retirement, and oftentimes that means listening to the experts about how, exactly, to plan for your senior years.  Unfortunately, though, there's a lot of not-so-great advice floating around out there, and some of the most well-known retirement rules no longer apply to today's workers. As you're planning for retirement, you may be better off steering clear of these outdated guidelines.  1. The 4% rule  The 4% rule has been around since the mid-1990s, and it states that you can withdraw 4% of your total savings during the first year of retirement, then adjust your withdrawals each year after to account for inflation.  While the 4% rule is still a good benchmark to get an idea of roughly how much you can spend each year in retirement, it has its flaws. For one, bond yields have dropped dramatically over the last couple of decades, so your retirement investments may not grow as much as the 4% rule assumes. In other word...