Skip to main content
This Board Has Moved

This board has been migrated to our new platform! Check out the new home page at discussion.fool.com or click below to go directly to the new Board on the new site.

Go to the New Site
No. of Recommendations: 2
AFAIK, 4% was not and is not recommended as a magic number.
It's a guide, a useful Rule of Thumb for planning.
As such (a Rule of Thumb) it's


Now that I know where the 4% number came from (thanks to telegraph) I can relate to it but when used like the article that started this thread, it IS a magic number -- or click bait.

Can You Really Retire with $5 Million? Yes, Here's How

I can not only retire on $5 Million but start a charity and have some left over! ;)

Since 1971 the S&P 500 has delivered a CAGR of 7.65%. By taking out 4% per year by 2042 the port will be worth $9,645,25. Put half in bonds and you are shooting yourself in the foot. Just put the $5 million in an S&P 500 index fund.

The Captain


Year Portfolio Withdraw Gain
4.00% 7.65%

2022 5,000,000 200,000 4,800,000 366,985
2023 5,166,985 206,679 4,960,305 379,241
2024 5,339,546 213,582 5,125,964 391,906
2025 5,517,871 220,715 5,297,156 404,995
2026 5,702,151 228,086 5,474,065 418,520
2027 5,892,585 235,703 5,656,882 432,498
2028 6,089,379 243,575 5,845,804 446,942
2029 6,292,746 251,710 6,041,036 461,868
2030 6,502,904 260,116 6,242,788 477,293
2031 6,720,082 268,803 6,451,278 493,233
2032 6,944,512 277,780 6,666,731 509,706
2033 7,176,437 287,057 6,889,380 526,729
2034 7,416,108 296,644 7,119,464 544,320
2035 7,663,784 306,551 7,357,232 562,498
2036 7,919,730 316,789 7,602,941 581,284
2037 8,184,225 327,369 7,856,856 600,697
2038 8,457,553 338,302 8,119,251 620,759
2039 8,740,010 349,600 8,390,409 641,490
2040 9,031,899 361,276 8,670,623 662,914
2041 9,333,537 373,341 8,960,196 685,053
2042 9,645,249 385,810
Print the post  

Announcements

This is a Politics Free Board
Politically charged posts are not permitted on the Metar Board. If you make a political post, and it is alerted, the post will be removed. Thanks!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.