When you've worked hard to kick off retirement with a nice amount of savings, you don't want to have to worry about that money running out. The 4% rule tells you to withdraw 4% of your savings your first year and adjust future withdrawals for inflation. But misunderstanding the 4% rule could put your money at risk and make you miserable during retirement. Under the 4% rule, you'd withdraw $40,000 your first year of retirement and adjust future withdrawals in line with inflation only. Understand what the rule is meant to doThe purpose of the 4% rule is to preserve your retirement savings.