Hansi can you share your views on the FIRE movement based on Bill Bengen 4% rule?
what you need for a year (needs, wants & desires) multiplied by 30 and if I have a
network of more than that –> I can retire??? is this correct? what is sacrosant about ’30’?
I like the FIRE movement. In a way, that’s what I have done myself
The movement assumed a 4% drawdown rate, so the multiplication by 25 to get to ‘the number’
Since investment returns are likely to be lower in future, they have started assuming lower drawdown rates. At 3%, the rule of thumb for multiplication becomes 33…hence the 30 to make it easier to estimate.