To be precise, a 1.3 percent fixed real return is all that is needed to make the 4 percent rule work for 30 years. The further amplifying effects of sequence risk on investment volatility made it seem like the compounded return was only 1.3 percent for retirees that year, instead of the actual 4.2 percent. Sequence risk amplified investment volatility, because the 30-year retirement could not rely on the average market return earned over the 30 years. The early part of the 1966
