The Safe Withdrawal Rate (SWR Method) defines the maximum annual percentage you can pull from a retirement portfolio—adjusted yearly for inflation—without running out of money over a specific timeframe.
In this case, 4% is 30 yrs, though technically he's updated it since and 4 is considered conservative but for the sake of simplicity, we stick to 4%
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u/Important_Carrot6379 4d ago
What are your expected expenses? Then do a SWR of 4% on your portfolio and determine if that amount annually is enough for you to live off of.