robertf57
Recycles dryer sheets
- Joined
- Jun 8, 2014
- Messages
- 337
4% is a number that results by choosing a certain success probability ( I think it's 95%) from a Monte Carlo simulation of the size of a portfolio after 30 years of withdrawals using historical market returns for various asset allocations. People should first do some serious budgeting and analysis of their individual circumstances and the use the 4% rule to see if they are on the retirement ballpark.
Almost...it arose from success in study of all 30 year periods (vis a vis, FIREcalc)
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