Dave Ramsey 12 Percent Retirement Rule: Does the Math Work?
The Dave Ramsey 12 percent retirement rule assumes your investments earn 12% a year, so you can spend about 8% of your nest egg every year in retirement. My view is that 12% is too optimistic to plan around, and with the S&P 500 down 5.0% over the past month (Yahoo Finance, as of November 6, 2026), an 8% withdrawal leaves you very little room if the market falls early in your retirement.