4% interest is an odd assumption, but the amounts makes some sense considering that 100K per year is an amount someone can reasonably live off of with a house.
4% is widely used as a safe withdrawal rate. It’s based on modelling with historical data of market returns and achieving a near 100% probability of not drawing down your principle over the long term.
4% interest is an odd assumption, but the amounts makes some sense considering that 100K per year is an amount someone can reasonably live off of with a house.
4% is widely used as a safe withdrawal rate. It’s based on modelling with historical data of market returns and achieving a near 100% probability of not drawing down your principle over the long term.