How much do I need to retire on $200k a year?
To retire on $200,000 a year using the 4% rule, you need about $5,000,000 invested. That's 25× your annual spending.
The 4% rule says a portfolio can sustainably support annual withdrawals of about 4% of its value, so the target is spending ÷ 0.04 = $5,000,000. It's a planning baseline, not a guarantee. Sequence-of-returns risk matters too, which Rightmont stress-tests with Monte Carlo.
Your real number depends on Social Security, pensions, taxes, and how spending shifts in retirement. Rightmont folds all of that into a full year-by-year projection, not a single rule of thumb.
Withdrawal rate vs outcome
The same question at every rate, so you can use the one you believe.
| Withdrawal rate | Portfolio needed |
|---|---|
| 3% | $6,666,667 |
| 3.5% | $5,714,286 |
| 4%our default | $5,000,000 |
| 4.5% | $4,444,444 |
| 5% | $4,000,000 |
The withdrawal rate is the share of the portfolio you spend in year one, then adjust for inflation. A lower rate is more cautious and needs more invested. Sequence of returns matters as much as the rate itself, which is what Rightmont tests with Monte Carlo.
Assumptions
- Withdrawal rate
- 4%
Frequently asked
How much do I need to retire on $200k a year?
About $5,000,000 invested, using the 4% rule (25× spending).
Is the 4% rule guaranteed?
No, it's a widely-cited baseline. Actual safety depends on returns, inflation, and withdrawal timing, and Rightmont tests it with Monte Carlo simulation.
What if I use a different withdrawal rate?
The target moves sharply: the table on this page runs the same spending at 3% through 5%. A lower rate is more cautious and needs a bigger portfolio.
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