![]() Now that you understand your yearly expenses and the 4% rule, you can calculate your FI number. This rule, which originates from a study on safe withdrawal rates, states that if you withdraw 4% of your savings in the first year of retirement, then adjust that amount for inflation each year, your wealth should last for 30 years or more. The next step involves applying the 4% rule. For example, if you plan to pay off your mortgage before retirement, this would lower your expenses.
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