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Cant you just guarantee your ability to do the 4% rule by buying some 30 year treasuries (the current interest rate is ~4%)? If you're worried that interest rat
by Rebelgecko 4y ago
Cant you just guarantee your ability to do the 4% rule by buying some 30 year treasuries (the current interest rate is ~4%)? If you're worried that interest rates will be lower if that matures and you're still alive, you could even look at annuities (not that an annuity is necessarily the right move)
- matt-attack 4y agoNot exactly because the 4% rule allows you to increase your withdrawals throughout time to track inflation. That would it be true if the treasuries. Also worth noting that the 4% rule is not designed for principle preservation. So you end up with zero after 30 years. I’m contrast, your approach would preserve the principle.
- elil17 4y agoThe 4% rule is inflation-adjusted, so no.
- berberous 4y agoYou can do it with TIPS: https://www.advisorperspectives.com/articles/2022/10/24/the-4-rule-just-became-a-whole-lot-easier https://www.advisorperspectives.com/articles/2022/10/24/the-...