What is the 4% rule example?

Again, these spending rates assume that you will follow that spending rule for the rest of your retirement and will not make future changes to your spending plan. Let's take a closer look at the 4% rule and discuss whether it could be a useful guiding rule for your own retirement planning or if you're not well equipped for the dynamic set of factors that govern long-term savings and future spending. However, the 4% rule, a popular guideline used to determine how much money you can comfortably spend each year of your retirement savings, can actually give some clues as to how much money you'll need to retire and what you need to do to achieve it. Now that you know how much money you'll need to take out of your retirement savings each year, you can use the 4% rule to calculate the total amount you'll need to save before starting retirement.