I want to talk about a rule that we've talked about on the show and that's the 4% rule. Yeah, this is the granddaddy of all rules of thumb and this is the idea of the 4% rule is this is the amount of your portfolio that you can withdraw each year during retirement.

So if you have a million dollar portfolio in the first year of retirement, you can safely withdraw $40,000 or 4% of that number and you can have a very high confidence rate that money will last you throughout your retirement. And there are a bazillion different caveats that going into solving the what level can I really retire at, the length that you're going to be living off your portfolio matters.

There's something called sequence of return risk, meaning that the first few years after you retire, what the market does or your rate of return really impacts that. There's also you have to factor in what are interest rates during the period that you retire for the 4% rule I think is a fantastic study point, but when you're actually making a "should I retire" decision, there's a bunch of other factors you need to consider.