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Anshuman Pandey's avatar

In the 4% withdrawal rule, what is the rate of inflation and Return % from equity portfolio considered?

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Budget Tiger's avatar

4% withdrawal rule means by withdrawing upto 4% of equity portfolio, our equity corpus does not get depleted over a period of time. Accordingly, we have to arrive at corpus amount which will be 25x (i.e. 4% withdrawal) annual expenses. Annual expenses to be arrived after factoring in inflation.

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