What Is A  Safe Withdrawal Rate For  Early Retirement?


Safe withdrawal rate is one of the fundamentals of Financial Independence and Retire Early (FIRE). Learn more about safe withdrawal rate for early retirement.

Safe Withdrawal Rate means having enough money to live a comfortable life while still having enough for the rest of your life.

The 4% SWR aims to enable you to withdraw 4% from your portfolio every year while still sustaining yourself.

Many people say that the economy will be different in the upcoming decades; the 4% rule will not hold up. While there are no guarantees based on historical returns.

When you retire in your 30s or 40s, you hopefully need your retirement amounts  for longer than the  30 years.

According to Bengen, your portfolio should consist of 50-60% stocks and 40-50% bonds if your retirement horizon is 30 years. 

When determining your Safe Withdrawal Rate, definitely take into account your time horizon, asset allocation, and recent market developments.