The 4% Rule for Financial Freedom
What portfolio size do you need to reach retirement and be self-sufficient?
Calculate your total monthly expenses = 4,166
Then multiply that by 12 to get your annual expenses = 50,000
Multiply that by 25 to get your required portfolio size = 1,250,000
Now you can withdraw 4% of your portfolio size annually to cover your expenses, and your capital will not diminish.
FLOW
0.05396
-13.47%
SXT
0.019
-3.55%
DOT
1.503
+0.94%