I've heard about the 40 million 4% rule, but I'm not sure what it exactly means. Could someone explain this concept to me, especially how it relates to financial planning or retirement savings?
6 answers
Carolina
Sun Dec 15 2024
The phrase "25 times the asset of annual spending" serves as a guideline for financial independence.
Carlo
Sat Dec 14 2024
Another rule often referenced in financial planning is the "4% rule."
PhoenixRising
Sat Dec 14 2024
According to this rule, by keeping your living expenses within 4% of your savings, you can ensure that your assets do not decrease over time.
BlockchainLegend
Sat Dec 14 2024
It suggests that to maintain a comfortable lifestyle, one should possess assets that are 25 times their annual expenditure.
CryptoChieftainGuard
Sat Dec 14 2024
For instance, if your annual spending amounts to 4 million yen, you would need assets totaling 100 million yen to live comfortably without the need for constant income.