Understanding the 3% Rule: Investing Strategies for Steady Growth
The 3% rule is a financial guideline aimed at individuals seeking a steady and sustainable growth in their investments. It suggests withdrawing only 3% of one's portfolio annually to ensure the preservation of principal and to outpace inflation. This method is often compared to the more traditional 4% rule, offering a more conservative approach that considers today's lower expected returns. Implementing the 3% rule can provide a layer of financial security and longevity for retirement accounts.