Four Percent Rule

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Definition: Four Percent Rule

Four Percent Rule
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Full Definition of Four Percent Rule

A commonly accepted guideline indicating the appropriate amount to withdraw annually from a retirement account. When using this rule, a retiree is expected to withdraw enough to cover current lifestyle costs while maintaining an account balance that will provide income for several years. The 4% should come from interest and dividend income credited to the account.

Cite Term

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https://payrollheaven.com/define/four-percent-rule/
Modern Language Association (MLA):
Four Percent Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
April 23, 2024 https://payrollheaven.com/define/four-percent-rule/.
Chicago Manual of Style (CMS):
Four Percent Rule. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/four-percent-rule/ (accessed: April 23, 2024).
American Psychological Association (APA):
Four Percent Rule. PayrollHeaven.com. Retrieved April 23, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/four-percent-rule/

Definition Sources

Definitions for Four Percent Rule are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.