[Today, we end FIRE week here at WCI, where we’ve celebrated all things Financial Independence, Retire Early-related, including the Physician on FIRE blog. Every post this week was about topics relevant to the FIRE community.]
By Dr. James M. Dahle, WCI Founder
An important rule of thumb for the physician investor to understand is the 4% rule. Especially if they’re thinking about becoming a part of (or are already involved with) the FIRE community.
A safe withdrawal rate is the amount you can withdraw from a portfolio every year without running out of money during your retirement. It seems straightforward, but it can actually get quite confusing. If you only spend the increase in value of a portfolio (or the income you get from it, which is often even less), you will never dip into principal. You will also end up