4% Rule
A rule of thumb suggesting you can withdraw about 4% of your portfolio in year one of retirement, then adjust for inflation, with low risk of running out.
Related terms
Related lessons
FIRE: Financial Independence, Retire Early
FIRE — Financial Independence, Retire Early — is a movement built on a striking insight: your savings rate, far more than your income, determines how soon work becomes optional. Learn the maths of financial independence, the flavours of FIRE, the real criticisms, and why its core principles make everyone wealthier, early retirement or not.
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