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What is the 4% SWP rule?

< 1 min read

The 4% SWP (Systematic Withdrawal Plan) rule is a strategy where you withdraw 4% of your mutual fund portfolio annually. This approach aims to generate a regular while still allowing the investment to grow in the long term. It’s a popular rule of thumb in retirement planning, especially for those relying on mutual fund investments to generate post-retirement cash flow without exhausting the principal early.

Updated on April 30, 2025

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