Frequently Asked Questions
Q: What is the 4% rule?
A: The 4% rule is a guideline that says you can withdraw 4% of your savings in your first year of retirement, adjust for inflation each year, and have a high probability of not running out of money for 30 years.
Q: Is the 4% rule safe for early retirement?
A: For traditional retirement (age 65+), yes. For early retirement (age 40-50), many in the FIRE community use a more conservative 3-3.5% withdrawal rate.
Q: What return rate should I use?
A: Historical stock market returns average 7-10% before inflation. For conservative planning, use 5-7%. For aggressive, use 8-10%.
Q: Does this account for inflation?
A: The 4% rule already accounts for inflation by adjusting withdrawals annually. Your return rate should be nominal (not inflation-adjusted) for accurate projections.
Q: What is the FIRE movement?
A: Financial Independence, Retire Early (FIRE) is a lifestyle movement focused on aggressive saving (50-70% of income) to achieve financial freedom in 10-15 years instead of 30-40.
Q: Is this tool free?
A: Yes — 100% free. No account, no signup, no credit card. Ads help support the free tool.
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