THE SAFE WITHDRAWAL RATE IN 1 GRAPH

Another graph that summarizes the validity of the 4% rule. Taking a long period of time, it seems the 4% withdrawal rate is working for a very large majority of situations. For dividend investors I would say your safe rate, given the cash payment of your dividend is not at stake, is your yield. Now of course emotionally, people that started their retirement years in 2009, didn’t feel quite comfortable with this rule, but we know what happened after…. 14.49% of annualized return between 2009 & end of 2016. You need to be cold blooded and ride these type of waves

 

4 PERCENT RULE FOR DIV INVESTORS

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