Mmastodon BusinessPersonal Finance first seen 1 d ago, last 10 h ago, peak #4

Financial independence math shifts as 4% rule author backs 4.7%

Original: The "times 25" in an FI number comes from the 4% withdrawal rule. Its author has since argued for 4.7%, which would turn

The popular 'times 25' formula for financial independence is based on the 4% safe withdrawal rule. Its original author has since argued 4.7% is defensible, which would cut a €750,000 target to roughly €638,000. Personal finance commentators note the difference comes entirely from the assumed withdrawal rate, and free browser calculators now let people test both figures on their own savings goals.

Why now: Renewed debate over safe withdrawal rates is prompting savers to recalculate how much they need to retire early.

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Evidence

• The "times 25" in an FI number comes from the 4% withdrawal rule. Its author has since argued for 4.7%, which would turn a €750,000 target into about €638,000. The gap comes entirely from the rate you assume, not from anything about your life. Free calculators, in your browser:… · turbobulls · 1

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