For every dollar saved, how does that impact FIRE?
Does that mean I will have .04 for perpetual safe withdrawal for every dollar saved?
TIA
Not in a 100% way, but your chances are good that you could take 4% out forever. Using cFIREsim a 75/25 stocks/bond portfolio has an ~82% of success over 50yrs at 4% WR. That's pretty darn good. More than 50% of the time you end up with 2.5 times more money than you started with and those folks would be setup for 4% forever.
At the same time 18% of the simulation using historical data ran out of money before 50yrs was up.
I use the mental shorthand of 4% of my investments = my forever income, but I have a small, but important
"in most cases" asterix in there as well.