4 ms·
What does the 4% rule have to do with yields of treasuries? This is a 30-year time horizon that changes spending purely based on inflation figures. Yields in th
by Kirby64 2y ago
What does the 4% rule have to do with yields of treasuries? This is a 30-year time horizon that changes spending purely based on inflation figures. Yields in the market do not matter.
- bachmeier 2y agoTIPS would work, but you're not getting 4% on TIPS. Though you can get 2.375% on 30-year TIPS, which isn't bad, just not enough to suffice for the 4% rule.
- Kirby64 2y agoAgain, what do treasury yields have to do with the 4% rule? The 4% rule assumes you’re investing 60% in equities.
- rufus_foreman 2y ago>> Though you can get 2.375% on 30-year TIPS 30 years? The author of the article is 47 years old, and his wife is 43. What happens if they live to be 80?
- bachmeier 2y agoThe 4% rule was proposed by Bill Bengen in the context of a 30-year retirement. Others have studied it in other contexts (including an infinite horizon) but 30 years is where the "safe withdrawal rate" literature started.