Trinity Study
A 1998 study by three Trinity University professors (Cooley, Hubbard, and Walz) that simulated 30-year retirements starting in every year from 1926 onward, using a 60/40 stock-bond portfolio. They counted how many starting points survived various withdrawal rates. The 4% line survived ~96% of scenarios, the foundation of every "safe withdrawal" conversation since.
Withdrawing 7% per year survived only ~30% of historical scenarios in the Trinity Study; 4% survived nearly all.
Money in motion
Compound interest
Interest paid not just on what you put in, but on the interest you have already earned.
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The rate at which the general price of things rises. Same money, less purchasing power.
Read →Interest rate
The percentage something pays, or costs, per year.
Read →Return
The gain (or loss) on an investment, usually expressed as a percentage per year.
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