Tag: projections

The 4% Rule Is Not Your Friend

The 4% Rule Is Not Your Friend for Early Retirement Savings // ournextlife.com, Tanja Hester, author of Work Optional: Retire Early the Non-Penny-Pinching Way, financial independence, FIRE movement

Today I’m tackling a popular and contentious principle in the FIRE community: the 4% rule. I’ve written about a major flaw of the “rule” before, namely that it relies on a false myth of level spending year over year in retirement, but today I’m taking on whether we can actually expect the 4% rule to give us enough of a margin of safety in the future.

How We Calculated Our “Enough” Number for Early Retirement

Calculating Our "Enough" -- Determining the Numbers Behind Our Financial Independence and Early Retirement Plan

Today I’m (finally) sharing something that I’ve wanted to write about for a long time, but haven’t tackled because there is no easy formula: how to determine what is “enough” to save for early retirement. “Enough” is perhaps the centrally important concept to early retirement, but it can feel overwhelming to quantify your own. Here’s a breakdown on how we calculated ours, and how you can do the same for your own circumstances.