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Exams
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Personal Finance & FIRE
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Advanced Strategies & the FIRE Movement
Test 1 Practice
Test 1
100
Test 2 Practice
Test 2
130
Test 3 Practice
Test 3
120
Options & Derivatives
Test 4
40
Capital Structure Theory
Test 5
40
Working Capital Management
Test 6
20
Personal Finance & FIRE
Test 7
50
Chapters
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1/10
Easy
According to the Trinity Study, what is the '4% Rule' regarding financial independence?
Tip: Right-click (or long-press) an option to cross it out.
A
An investor must achieve a 4% minimum real return every year to prevent bankruptcy.
B
An investor can withdraw 4% of their initial retirement portfolio value in Year 1, adjusted for inflation annually thereafter, with a high statistical probability of never running out of money over a 30-year period.
C
An investor must save exactly 4% of their gross income annually from age 22 to achieve retirement by age 65.
D
An investor is immune to market crashes as long as they hold 4% of their portfolio in cash emergency reserves.
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