Loading…
The 4% rule suggests withdrawing 4% of your retirement portfolio in the first year, then adjusting for inflation annually. This aims to make money last 30 years.
This rule is based on historical stock/bond returns. Some argue lower rates are safer given current conditions.
Your required retirement portfolio is 25 times your annual expenses (1 ÷ 0.04 = 25).
Understanding four percent rule helps you make better investment decisions and plan for taxes. Use our fire calculator to see how it applies to your situation.
