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Do You Use the 4% Rule to Set Your Investment Goal?
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In yesterday's livestream, @谋定后动 mentioned the 4% Rule for wealth freedom. Wealth Freedom Goal = monthly expenses × 12 months ÷ 4% The 4% Rule is based on the assumption that withdrawing 4% of your savings each year will allow you to live off your investments without exhausting them too soon. Do you agree with this principle? Calculate Monthly Expenses: Determine how much you spend each month. Annualize Expenses: Multiply monthly expenses by 12 to get annual expenses. Estimate Required Savings: Divide annual expenses by 4%. Example: If your monthly expenses are $10,000: Annual expenses = $10,000 × 12 = $120,000 Required savings = $120,000 ÷ 0.04 = $3,000,000 This means you need $3,000,000 to live off 4% of your savings annually, achieving financial independence. But it’s important to note that we should adjust for inflation. People in Singapore may need a smaller percent like 3% rule. $Tiger Brokers(TIGR)$ How do you set your investment goals? Do you agree with the 4% rule? How’s your investment goal going? Leave your comments and also post to win tiger coins!
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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