- Your expenses are considered to be your net income – your monthly accumulation
- Inflation is assumed to be 2%
- Age and gender is used to calculate a life expectancy
- Pension is not accounted for
- The 25-rule calculates when your investments reach 25-times your expenses. This is considered a good rule-of-thumb for an adequate buffer against market downturns.
- Fixed returns assumes you continue to get the same returns even after retirement and will optimize you to live off those capital gains.
- Withdraw to zero also assumes the same returns after retirement but leaves nothing for your children.