The 4% Rule for Financial Freedom


What size of portfolio do you need to reach retirement and be independent of a job?

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

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

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

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