Using the 4% Rule to Gradually Reduce Your Workdays

While most discussions fixate on using the 4% rule to completely retire, the concept is equally useful for those looking to reduce their work schedules. In the diagram above, we can see how many days* we could safely eliminate from our work schedule. To get back a 2 month summer break, you would need a net worth of approximately $125,000, if you kept an annual spending rate of $30,000. Not only does this sound reasonable, but it would also make most work situations bearable, some might even become enjoyable.

As the 4% rule assumes that you are only drawing down from your accumulated net worth, a partial reduction is much safer:

Continue reading “Using the 4% Rule to Gradually Reduce Your Workdays”