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by noxxten 3292 days ago
On your second point, I'm assuming those savings should be invested, correct? Enough to earn at minimum a 4% ROI?
1 comments

The underlying assumption to the 4% rule is that you get the average 7% growth of the US stock market. This allows for 4% withdrawal and 3% to keep up with inflation, which historically would have worked at almost all points in the US market. Firecalc [1] lets you look at how your assumptions would fare in all sequences of years of US stock data (percentage of outcomes where you would've been fine/bankrupt.)

[1] http://www.firecalc.com/