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2061: [Part 2] The Four Backstops to the Four Percent Rule by Sean Mullaney

Optimal Finance Daily - Financial Independence and Money Advice

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Early Retirees - Is the 4% Rule Working?

Most early retirees own their own primary residence, usually with significant equity or no mortgage. The $150,000 difference in sale prices can become a financial asset to backstop 4% rule assets and help the retirees succeed financially. A not insignificant number of early retirees will have an early retirement that lasts sadly only 10 years, 15 years, or 20 years. That, again, sadly, backstops the 4%.

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