The “7% Rule” actually refers to three different money rules that help you make smarter decisions in stocks, retirement, and real estate. In stock trading, it advises selling if a stock falls 7% below the purchase price to limit losses and protect capital. For retirement withdrawals, it guides how much you can safely take out each year without running out of funds. In real estate, it helps screen properties by aiming for a 7% annual return to ensure a good investment. These rules help control risk, protect your money, and make smarter financial choices.
7% rule explained: Why traders use it, how retirees apply it, and why property investors swear by it
