Fuel for the F.I.R.E.: Updating the 4% rule for early retirees

Followers of the F.I.R.E. movement—Financial Independence, Retire Early—have long relied on the “4% rule” to determine portfolio withdrawals over perhaps 40 or 50 years in retirement. But that rule was originally designed for investors with a 30-year retirement horizon and embeds simplifying assumptions that can limit a retirement plan’s viability. Using Vanguard’s principles for investing success, a new Vanguard paper illustrates how F.I.R.E. investors can improve their chances of financing an early retirement.

Fuel for the F.I.R.E.: Updating the 4% rule for early retirees