In our hectic lives, everyone likes a quick answer. How about this one: When you can live off 4% of your portfolio annually you are financially independent. Short and sweet. Seems like a simple enough shortcut to follow, but first, recognize it as such—a shortcut. And know this, when blindly accepted as golden rules, shortcuts can be dangerous to your financial and emotional well-being.
The 4% Rule: How Reliable is It?
In our hectic lives, everyone likes a quick answer. How about this one: When you can live off 4% of your portfolio annually you are financially independent. Short and sweet. Seems like a simple enough shortcut to follow, but first, recognize it as such—a shortcut. And know this, when blindly accepted as golden rules, shortcuts can be dangerous to your financial and emotional well-being.