When figuring out how much money you need to save before retirement, do you follow the 4% rule? Fidelity recommends to play it extra safe and plan for 1.8% (instead of 4) as the annual percentage I can take out from my investments once I retire.

Any thoughts on this? What percentage do you guys use?

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1.8% seems  ridiculously low. 4% rule was only meant for 30 year retirement, so if you plan to retire early you will need to be more conservative. But most people would consider 3% to 3 1/2% safe enough. 

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Color me shocked that an investment brokerage firm is against people using simple methods and people staying aggressively invested. It breaks their historical recommendations of how to retire. We’re building a split in the generation of people who are FIREing and people who are dead broke.

4% rule doesn’t factor inflation FYI.

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There’s overlap. Trinity is historical actuals and you run out in 30yrs. The 4% as a perpetuity is just basic algebra and can assume you only ever touch growth. I don’t put much value on past market performance So don’t look to Trinity so much as think about actual expenses. Trinity is a back validation and I don’t think it’s as relevant in today’s markets.

I’m planning 3% but also looking at FatFIRE so my number is high to start with.

My goal is ~$100k and $3M right at the edge on your chart between FIRE and FatFIRE but definitely plan on a bigger egg nest!

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