🌴 How much larger of a portfolio do I need to retire on dividends versus the 4% rule?

About eight years ago, Jake discovered the FIRE movement and faced a major choice. He had to decide whether to go the traditional route with the 4% rule or use dividend investing to retire early. He ultimately chose dividend investing.

This calculator compares the portfolio sizes and timelines needed for each strategy. It calculates exactly how much extra capital and how many extra years of saving you need to buy the peace of mind that comes with never selling your shares.

The 4% rule gives you full participation in the stock market's growth, but carries sequence of returns risk. As Jake explains, selling at the wrong time or in a bear market will permanently damage your portfolio's trajectory.

Dividend investing avoids that boom or bust lifestyle entirely. Safe dividend yields usually hover around 3% to 4%, which means you generally need a larger portfolio. You sacrifice some growth for lower volatility. Because you live off the investment itself, you preserve that wealth for your family.