The actual number is closer to 14.2067, but this example should give you an idea of the difference between the rule of a thumb method and the true value. 🙋 You can meet an application of the rule of 72 at our future value calculator! Things to consider when using the doubling time ...
I agree. The 4% rule is a very safe / conservative rule of thumb. A generic rule of thumb. We forget that to fail the 4% rule you need to be landing the plane for over 20 years. If you know you are failing (Maybe you hit that bummer sequence of return risk) you would also ha...
with the actual dollar amounts withdrawn adjusted down-ward or upward relative to the plan. The investor needs to keep in mind that selection of a withdrawal rate is not a matter of contract but rather a matter of planning
(In case you are confused by the headline: a principle is a rule, and pollex is an obscure term for thumb. Therefore, we’re talking about Rules of Thumb.) In this installment of our ongoing Principles of Pollex series, we’re going to talk about two Rules from the ...