{"id":10000,"date":"2023-08-10T19:38:59","date_gmt":"2023-08-10T11:38:59","guid":{"rendered":"https:\/\/slashtraders.com\/?p=10000"},"modified":"2026-01-20T19:47:18","modified_gmt":"2026-01-20T11:47:18","slug":"four-percent-rule-retirement-stocks","status":"publish","type":"post","link":"https:\/\/www.slashtraders.com\/en\/blog\/four-percent-rule-retirement-stocks\/","title":{"rendered":"4% Rule for Early Retirement: Buy Dividend Stocks to Never Sell a Single Share"},"content":{"rendered":"<p class=\"wp-block-paragraph\">We have all heard of the 4% rule as the guide to retiring early. As long as we don't withdraw more than 4% of our savings each year, we can maintain the same quality of life without ever running out of retirement funds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">We talk about how the 4% rule works, and how to pick stocks with more than 4% dividend yield to speed up your passive income for <a href=\"https:\/\/slashtraders.com\/en\/blog\/best-fire-blogs\/\" target=\"_blank\" rel=\"noreferrer noopener\">early retirement<\/a>.<\/p>\n\n\n<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<span class=\"fpRV6hkTOS7WClKemYXoQPiHcaMyFDg5d0xvj1Un2tLwEN8rqA\"><iframe title=\"Stocks to Satisfy the 4% Rule to Retirement\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/_2DI6LkhzH8?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/span>\n<\/div><\/figure>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Is the 4% Rule?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The 4% rule is a shortcut to calculating the Safe Withdrawal Rate from your retirement savings. If you withdraw no more than 4% of your total equity each year, then you can enjoy a comfortable lifestyle and never run out of money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How Long Can You Live on the 4% Rule?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">When <a href=\"https:\/\/en.wikipedia.org\/wiki\/William_Bengen\" target=\"_blank\" rel=\"noreferrer noopener\">William Bengen<\/a> discovered the 4% rule in the 90s, he first analysed the market performance and different retirement scenarios over the past 75 years to find a safe withdrawal rate. Then he proposed that as long as you don't withdraw more than 4% of your life savings per year, you will never worry about running out of money in your lifetime.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">We are confident the 4% rule can let us enjoy at least 30 years of retirement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The 4% Rule Formula for Retirement<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Since we want to keep our costs below 4% of our total equity, we simply multiply our annual expenses by 25 to find our target retirement fund.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">Target Retirement Savings = Annual Expenses x 25<\/p>\n<\/blockquote>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">So we can create a comparison where our annual expenses meet the target retirement savings. This shows we can <a href=\"https:\/\/dollarbureau.com\/blog\/financial-independence-retire-early-fire-singapore\/\" target=\"_blank\" rel=\"noreferrer noopener\">speed up our retirement by reducing costs in our lifestyle<\/a> and <a href=\"https:\/\/slashtraders.com\/en\/blog\/dollar-cost-averaging\/\" target=\"_blank\" rel=\"noreferrer noopener\">accumulating wealth through savings<\/a>.<\/p>\n\n\n<\/p>\n\n\n\n<table id=\"tablepress-53\" class=\"tablepress tablepress-id-53\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Annual expenses<\/th><th class=\"column-2\">Target retirement savings<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">$10,000<\/td><td class=\"column-2\">$250,000<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">$20,000<\/td><td class=\"column-2\">$500,000<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">$30,000<\/td><td class=\"column-2\">$750,000<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">$40,000<\/td><td class=\"column-2\">$1,000,000<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">$50,000<\/td><td class=\"column-2\">$1,250,000<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">$60,000<\/td><td class=\"column-2\">$1,500,000<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">$70,000<\/td><td class=\"column-2\">$1,750,000<\/td>\n<\/tr>\n<tr class=\"row-9\">\n\t<td class=\"column-1\">$80,000<\/td><td class=\"column-2\">$2,000,000<\/td>\n<\/tr>\n<tr class=\"row-10\">\n\t<td class=\"column-1\">$90,000<\/td><td class=\"column-2\">$2,250,000<\/td>\n<\/tr>\n<tr class=\"row-11\">\n\t<td class=\"column-1\">$100,000<\/td><td class=\"column-2\">$2,500,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-53 from cache -->\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why Use the 4% Rule?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are a few advantages to planning your retirement with the 4% rule:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li class=\"translation-block\">The rule helps us set a money-saving goal quickly, and maintain <a href=\"https:\/\/slashtraders.com\/en\/blog\/portfolio-management-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">good money habits<\/a>.<\/li>\n\n\n\n<li>It is a time-tested, believable rule of thumb.<\/li>\n\n\n\n<li>A disciplined withdrawal rate of less than 4% should maintain a consistent quality of retirement.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Risks of the 4% Rule<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here are some risks to planning your retirement with the 4% rule:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>In the event of big and unexpected inflation, a 4% withdrawal rate may not be enough.<\/li>\n\n\n\n<li>Some people may feel leaving too much savings behind as inheritance is missing out on a better quality of life.<\/li>\n\n\n\n<li>The retirement cash flow may not be enough to cover medical emergencies and other unexpected expenses.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><a href=\"https:\/\/www.slashtraders.com\/en\/pricing\/?utm_source=blog&amp;utm_medium=banner\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"126\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2021\/05\/blog-trial-banner.png\" alt=\"blog trial banner\" class=\"wp-image-9717\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">How to Pick Stocks With More Than 4% Dividend Yield<\/h2>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Since we want to retire with 4% of our equity, we can use the <a href=\"https:\/\/slashtraders.com\/en\/tools\/dividend-stock-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">Dividend Stock Picker<\/a> to find blue-chip stocks with more than 4% yield for long-term investment. So we can live on the dividends during retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">We can find long-term investment opportunities like <a href=\"https:\/\/slashtraders.com\/en\/blog\/undervalued-dividend-kings-list\/\" target=\"_blank\" rel=\"noreferrer noopener\">dividend kings<\/a> and <a href=\"https:\/\/slashtraders.com\/en\/blog\/undervalued-dividend-aristocrats\/\" target=\"_blank\" rel=\"noreferrer noopener\">dividend aristocrats<\/a>:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>With more than 25 consecutive years of increasing dividends.<\/li>\n\n\n\n<li>More than 4% dividend yield.<\/li>\n\n\n\n<li class=\"translation-block\">Also more than 10% in Upside so we have enough <a href=\"https:\/\/slashtraders.com\/en\/blog\/margin-of-safety-formula\/\" target=\"_blank\" rel=\"noreferrer noopener\">margin of safety<\/a> to avoid stock price crashes.<\/li>\n\n\n\n<li class=\"translation-block\">We also need to <a href=\"https:\/\/slashtraders.com\/en\/blog\/value-trap\/\" target=\"_blank\" rel=\"noreferrer noopener\">avoid value traps<\/a>, to prevent buying and owning losing stocks.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large\"><img decoding=\"async\" width=\"1024\" height=\"258\" src=\"https:\/\/slashtraders.com\/wp-content\/uploads\/2023\/08\/undervalued-dividend-aristocrat-filter-settings.png\" alt=\"undervalued dividend aristocrat filter settings\" class=\"wp-image-10015\" srcset=\"\" sizes=\"(max-width: 1024px) 100vw, 1024px\" data-srcset=\"\" \/><figcaption class=\"wp-element-caption\">Find undervalued, high-yield dividend aristocrats in seconds.<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph translation-block\">Finally, we sort the list by Dividend Yield. We get a list of <a href=\"https:\/\/slashtraders.com\/en\/tools\/best-value-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">value stocks<\/a> with a great dividend-paying record with more than 4% yield.<\/p>\n\n\n\n<table id=\"tablepress-56\" class=\"tablepress tablepress-id-56\">\n<thead>\n<tr class=\"row-1\">\n\t<th class=\"column-1\">Stocks<\/th><th class=\"column-2\">Description<\/th><th class=\"column-3\">Last<\/th><th class=\"column-4\">Fair value<\/th><th class=\"column-5\">Upside<\/th><th class=\"column-6\">Dividend yield<\/th><th class=\"column-7\">Years of dividend growth<\/th>\n<\/tr>\n<\/thead>\n<tbody class=\"row-striping row-hover\">\n<tr class=\"row-2\">\n\t<td class=\"column-1\">WBA<\/td><td class=\"column-2\">Walgreens Boots Alliance Inc<\/td><td class=\"column-3\">$29.98<\/td><td class=\"column-4\">$37.78<\/td><td class=\"column-5\">26.02%<\/td><td class=\"column-6\">6.43%<\/td><td class=\"column-7\">48<\/td>\n<\/tr>\n<tr class=\"row-3\">\n\t<td class=\"column-1\">WPC<\/td><td class=\"column-2\">W.P. Carey Inc<\/td><td class=\"column-3\">$66.45<\/td><td class=\"column-4\">$73.99<\/td><td class=\"column-5\">11.35%<\/td><td class=\"column-6\">6.43%<\/td><td class=\"column-7\">26<\/td>\n<\/tr>\n<tr class=\"row-4\">\n\t<td class=\"column-1\">UGI<\/td><td class=\"column-2\">UGI Corp<\/td><td class=\"column-3\">$24.43<\/td><td class=\"column-4\">$31.59<\/td><td class=\"column-5\">29.31%<\/td><td class=\"column-6\">6.14%<\/td><td class=\"column-7\">36<\/td>\n<\/tr>\n<tr class=\"row-5\">\n\t<td class=\"column-1\">FLIC<\/td><td class=\"column-2\">First of Long Island Corp<\/td><td class=\"column-3\">$13.85<\/td><td class=\"column-4\">$19.38<\/td><td class=\"column-5\">39.93%<\/td><td class=\"column-6\">6.06%<\/td><td class=\"column-7\">27<\/td>\n<\/tr>\n<tr class=\"row-6\">\n\t<td class=\"column-1\">MMM<\/td><td class=\"column-2\">3M Co<\/td><td class=\"column-3\">$105.49<\/td><td class=\"column-4\">$118.67<\/td><td class=\"column-5\">12.49%<\/td><td class=\"column-6\">5.69%<\/td><td class=\"column-7\">65<\/td>\n<\/tr>\n<tr class=\"row-7\">\n\t<td class=\"column-1\">AROW<\/td><td class=\"column-2\">Arrow Financial Corp<\/td><td class=\"column-3\">$20.44<\/td><td class=\"column-4\">$31.03<\/td><td class=\"column-5\">51.81%<\/td><td class=\"column-6\">5.28%<\/td><td class=\"column-7\">30<\/td>\n<\/tr>\n<tr class=\"row-8\">\n\t<td class=\"column-1\">NNN<\/td><td class=\"column-2\">National Retail Properties Inc<\/td><td class=\"column-3\">$40.32<\/td><td class=\"column-4\">$45.81<\/td><td class=\"column-5\">13.62%<\/td><td class=\"column-6\">5.19%<\/td><td class=\"column-7\">34<\/td>\n<\/tr>\n<tr class=\"row-9\">\n\t<td class=\"column-1\">o<\/td><td class=\"column-2\">Realty Income Corp<\/td><td class=\"column-3\">$59.22<\/td><td class=\"column-4\">$67.85<\/td><td class=\"column-5\">14.57%<\/td><td class=\"column-6\">5.18%<\/td><td class=\"column-7\">30<\/td>\n<\/tr>\n<tr class=\"row-10\">\n\t<td class=\"column-1\">NWN<\/td><td class=\"column-2\">Northwest Natural Holding Co<\/td><td class=\"column-3\">$41.33<\/td><td class=\"column-4\">$47.05<\/td><td class=\"column-5\">13.84%<\/td><td class=\"column-6\">4.48%<\/td><td class=\"column-7\">67<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<!-- #tablepress-56 from cache -->\n\n\n\n<p class=\"wp-block-paragraph translation-block\">The WBA stock has been increasing in dividends for 48 years straight. We can expect a 6.43% dividend yield for holding the stocks, with a 26% potential Upside for a <a href=\"https:\/\/slashtraders.com\/en\/tools\/bull-put-spread-screener\/\" target=\"_blank\" rel=\"noreferrer noopener\">bullish outlook<\/a>. There is a high probability of providing us with passive income for retirement.<\/p>\n\n\n\n<p class=\"has-ast-global-color-4-background-color has-background wp-block-paragraph\"><a href=\"https:\/\/www.slashtraders.com\/en\/blog\/slashtraders-vs-sp500\/\" target=\"_blank\" rel=\"noreferrer noopener\">SlashTraders vs S&amp;P 500: 450% Outperformance, Verified Trades and How to Copy Every Alert<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>By withdrawing less than 4% of our savings each year, we can live long without running out of money. Pick stocks with more than 4% dividend yield to retire early.<\/p>","protected":false},"author":1,"featured_media":10001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"plain-container","ast-site-content-layout":"normal-width-container","site-content-style":"unboxed","site-sidebar-style":"unboxed","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","_wp_rev_ctl_limit":"5"},"categories":[3],"tags":[56,12,64,59,11],"class_list":["post-10000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-cn","tag-en","tag-es","tag-stocks","tag-tw"],"_links":{"self":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/10000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/comments?post=10000"}],"version-history":[{"count":5,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/10000\/revisions"}],"predecessor-version":[{"id":14253,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/posts\/10000\/revisions\/14253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/media\/10001"}],"wp:attachment":[{"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/media?parent=10000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/categories?post=10000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.slashtraders.com\/en\/wp-json\/wp\/v2\/tags?post=10000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}