The 4% Rule for Financial Freedom


What size of portfolio do you need to reach retirement and not rely on a job

Calculate your monthly expenses including everything = 4,166
Then multiply it by 12 to find your annual expenses = 50,000

Multiply the number by 25 to get the required portfolio size = 1,250,000

Now you can withdraw 4% of the portfolio size annually to cover your expenses, and the principal does not decrease.
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