The 4% Rule

The Trinity Study found that if you withdraw 4% of your portfolio in year one and adjust for inflation each year after, your money survived 30+ years in most historical scenarios, often cited around 95% depending on allocation and assumptions. That does not mean the portfolio simply throws off 4% forever or that paid work is impossible to need again. It is a planning shortcut for a roughly 30-year retirement, and longer timelines usually call for flexibility.

Flip the math: if you need $40,000 a year to live, you need $40,000 / 0.04 = $1,000,000. That's your freedom number. Not a billion. Not even ten million. A clean, achievable target.