By Maya Trang | WorldRetire Financial Editor
If you’re dreaming of early retirement, the 4% Rule is your roadmap. This simple formula tells you exactly how much you need to retire and when you can leave the 9-5 grind behind.
The Rule: If you have 25 times your annual expenses invested, you can retire. Withdraw 4% in year one, adjust for inflation each year, and your money should last 30+ years.
Example: Annual expenses = $40,000 × 25 = $1,000,000 target portfolio.
While not perfect, the 4% Rule is the best starting point for answering “how much do I need to retire?” Start here, adjust for your situation, and use it as your north star to financial freedom.