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3D numeral four with percent sign (Photo: Shutterstock)

The withdrawal rate debate — that is, what is the best percentage to pull from retirement savings each year — has been heating up, especially as interest rates have been near zero. Although the 4% rule, first noted by Bill Bengen in 1994, has been a standard recommendation, that number has come under more scrutiny of late.

Bengen used a 30-year time horizon, starting in 1926, to demonstrate why the 4% rule worked. He assumed a portfolio holding 50% stocks and 50% fixed income securities.

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