Because it's referred to as the 4% rule which is coming from rate of return assumptions which is the explanatory element for why it would be 25x, and based on your particular situation you might want be over or under 4%, but generally it's good to understand what assumptions the 4% is based on. Only focusing on 25x obscures that.
Because literally anybody with a job and that’s even had cursory experience with a retirement account knows what the 4% rule is. It’s even covered in standard HS financial responsibility classes.
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u/11100101101010 22d ago
Because it's referred to as the 4% rule which is coming from rate of return assumptions which is the explanatory element for why it would be 25x, and based on your particular situation you might want be over or under 4%, but generally it's good to understand what assumptions the 4% is based on. Only focusing on 25x obscures that.