A client has a $1 million portfolio and uses the 4% rule. Approximately how much can they withdraw in the first year, and how are subsequent withdrawals adjusted?
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A
$40,000 first year; subsequent withdrawals adjusted for inflation
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B
$40,000 every year regardless of portfolio performance
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C
$40,000 first year; subsequent withdrawals reset to 4% of current balance
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D
$10,000 per quarter; no subsequent adjustments