Investing Rules of Thumb

Save 20%

With the disappearance of pension plans, Americans need to save at least 20% of their income to have enough for a secure retirement, more if your in your 50’s or 60’s.
~ Craig Israelson, Financial Planning magazine

Withdraw 4%

A senior citizen’s biggest fear is running out of money. To give yourself the best chance of not running out of money, a 4% withdrawal rate of your savings is a widely accepted maxim.

These are rules of thumb, perhaps goals. They are not hard and fast.

The bottom line, as always: Live below, not within, your means.