Denise Shelton
Nov 21, 2024

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Exactly. Say your retirement fund is $700,000. Your 4% is $28,000. If the inflation rate is 2.5%, you increase your withdrawal based on 2.5% of the withdrawal amount NOT the total retirement fund. Adjusted for inflation, your withdrawal amount would be $28,700. If you use the full nest egg as your basis, you will run out of money fast.

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Denise Shelton
Denise Shelton

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