Research • • By Coast FIRE Team
The 4% Safe Withdrawal Rate Rule and Coast FIRE
Why the 4% rule from the Trinity Study remains the cornerstone of modern retirement planning.
The 4% Safe Withdrawal Rate Rule and Coast FIRE
The 4% Rule stems from the famous 1998 Trinity Study, which evaluated 30-year retirement horizons using historical US stock and bond market data.
Why 4% Matters for Coast FIRE
When planning for retirement spending, dividing your annual expense by 0.04 gives your target portfolio:
- $40,000 / 0.04 = $1,000,000 nest egg.
- With Coast FIRE, you let compound growth reach that $1M goal without ongoing contributions!