The 4% number is a common retirement rule of thumb. It assumes a 7% return on your investments with a 3% rate of inflation so you can take 4% out forever without touching your inflation adjusted principle.
Which is why I avoid the whole investing charade all together and just cut my expenses instead! Woohoo!
No mortgage, no marriage, no restaurants, no fancy gadgets, just a nice relaxing low cost of living life with friends who feel the same way.
Every once in a while I take some controlled investing risks, but hell if I would ever plunk 300k in a mutual fund and just safely assume everything will be fine when I check it 30 years from now.
