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
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SXT
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DOT
1.261
-1.94%