The 100 minus age rule for equity allocation is a simple formula that suggests how much of your portfolio should be invested in stocks based on your age.
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.
In the 4% withdrawal rule, what is the rate of inflation and Return % from equity portfolio considered?
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.