Assume you get 7% capital gain and 3.5 % inflation and 25% tax. Then calculate you required capital with the factor of 38 (1 / (0.07-0.035) / (1-0.25)) of doing it fast in the head times 40 (times 4, add a zero). This is for the yearly capital requirement. Calculate what you need in one month times 456 to get the capital required for a payout each month (times 400 and times 500 and take the middle).
E.g. I need 3000 per month. it is 1.2M (x400) and 1.5M, so 1.35M capital to get it.
The times 4 5 hundred rule.
Btw, to get to million, input not 3000 but 3, and do times 4 and times 5 and divide by ten at the end (times 0.45)
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