The four percent rule basically says that your withdrawals in retirement should not exceed four % of your portfolio. So for every one dollar that you have in annual expenses, your portfolio should be worth at least 25 dollars. If you need a hundred k a year to live on, or something like that, you just multiply that hundred k by 25, and that gives you two and a half million dollars. That is e fo peset. And this thing is called fire, which is anachronym for what it stands for - financially independent and retired early.

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