A. The 4% rule says that if a retiree takes out only 4% of the retirement portfolio each year, adjusted for inflation, the money could last the retiree's life. But does this apply to people with early retirement?
Probably not. Here is an alternative rule - divide your age by 20. A couple should use the younger partner's age.
This alternative rule will give you the percentage that you can safely spend. For example, if you are age 50, you can take out 2.5% of an one million dollar portfolio, or $25,000 per year.