What is Four Percent Rule?

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The Four Percent Rule is a retirement planning strategy designed to help retirees determine the safe amount to withdraw from their retirement savings annually to ensure that their funds last throughout their retirement. The rule, based on research, suggests that retirees withdraw 4% of their retirement savings in the first year and then adjust the withdrawal amount in subsequent years for inflation. The Four Percent Rule is widely used in personal financial planning, especially for retirees relying on an investment portfolio to cover living expenses.Key characteristics include:Initial Withdrawal Rate: Withdraw 4% of the total retirement savings in the first year of retirement as living expenses.Inflation Adjustment: Adjust the withdrawal amount for inflation in subsequent years to maintain purchasing power.Long-Term Planning: The rule is designed to ensure that retirement savings can support up to 30 years of retirement.Investment Portfolio: Typically assumes that retirement savings are invested in a diversified portfolio of stocks and bonds for stable long-term returns.Example of the Four Percent Rule application:Suppose an individual has $1 million in retirement savings. According to the Four Percent Rule, they can withdraw $40,000 in the first year of retirement. Assuming an inflation rate of 2%, they would withdraw $40,800 ($40,000 × 1.02) in the second year, $41,616 ($40,800 × 1.02) in the third year, and so on.

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Gravestone Doji

The term gravestone doji refers to a bearish indicator commonly used in trading by technical analysts. A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance at the beginning of the session was overcome by bears by the end of the session. This often comes just before a longer-term bearish downtrend.

Gravestone Doji

The term gravestone doji refers to a bearish indicator commonly used in trading by technical analysts. A gravestone doji is a bearish reversal candlestick pattern that is formed when the open, low, and closing prices are all near each other with a long upper shadow. The long upper shadow suggests that the bullish advance at the beginning of the session was overcome by bears by the end of the session. This often comes just before a longer-term bearish downtrend.

A bond's nominal yield, depicted as a percentage, is calculated by dividing total interest paid annually by the face, or par, value of the bond. It represents the annual interest income that investors can receive based on the bond's face value, without taking into account market price fluctuations or the effects of inflation.

Nominal Yield

A bond's nominal yield, depicted as a percentage, is calculated by dividing total interest paid annually by the face, or par, value of the bond. It represents the annual interest income that investors can receive based on the bond's face value, without taking into account market price fluctuations or the effects of inflation.

Nominal Rate Of Return

The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation. If an investment generated a 10% return, the nominal rate would equal 10%. After factoring in inflation during the investment period, the actual ("real") return would likely be lower.However, the nominal rate of return has its merits since it allows investors to compare the performance of an investment irrespective of the different tax rates that might be applied for each investment.

Nominal Rate Of Return

The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation. If an investment generated a 10% return, the nominal rate would equal 10%. After factoring in inflation during the investment period, the actual ("real") return would likely be lower.However, the nominal rate of return has its merits since it allows investors to compare the performance of an investment irrespective of the different tax rates that might be applied for each investment.

Book Value Per Common Share

Book value per common share (or, simply book value per share - BVPS) is a method to calculate the per-share book value of a company based on common shareholders' equity in the company. The book value of a company is the difference between that company's total assets and total liabilities, and not its share price in the market.Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are liquidated and all creditors are paid.

Book Value Per Common Share

Book value per common share (or, simply book value per share - BVPS) is a method to calculate the per-share book value of a company based on common shareholders' equity in the company. The book value of a company is the difference between that company's total assets and total liabilities, and not its share price in the market.Should the company dissolve, the book value per common share indicates the dollar value remaining for common shareholders after all assets are liquidated and all creditors are paid.

A buy stop order instructs a broker to purchase a security when it reaches a pre-specified price. Once the price hits that level, the buy stop becomes either a limit or a market order, fillable at the next available price.This type of stop order can apply to stocks, derivatives, forex or a variety of other tradable instruments. The buy stop order can serve a variety of purposes with the underlying assumption that a share price that climbs to a certain height will continue to rise.

Buy Stop Order

A buy stop order instructs a broker to purchase a security when it reaches a pre-specified price. Once the price hits that level, the buy stop becomes either a limit or a market order, fillable at the next available price.This type of stop order can apply to stocks, derivatives, forex or a variety of other tradable instruments. The buy stop order can serve a variety of purposes with the underlying assumption that a share price that climbs to a certain height will continue to rise.

The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying value of its securities and to enable the analyst to make recommendations to clients based on that information.

Mosaic Theory

The mosaic theory refers to a method of analysis used by security analysts to gather information about a corporation. The mosaic theory involves collecting public, non-public, and non-material information about a company to determine the underlying value of its securities and to enable the analyst to make recommendations to clients based on that information.