Permanent Portfolio Calculator

4x25

FIRE 4% Rule · Rebalancing Tool

Threshold: ±
10
%

💰 Current Holdings

Total Value 0
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🔄 Rebalancing Suggestions

Target: 25%
Asset Current % Target Value Action

FIRE 4% Rule Preview

Safe Annual Withdrawal

0

Safe Monthly Withdrawal

0

🔥 What is the 4% Rule?

The cornerstone of the FIRE movement. Simply put: if you save 25 times your annual expenses and withdraw only 4% each year, historical data (Trinity Study) suggests your portfolio will likely last for over 30 years.

What is the Permanent Portfolio?

The Permanent Portfolio is an investment strategy invented by Harry Browne, designed to preserve and grow your wealth under any economic condition—whether it's prosperity, deflation, inflation, or stagflation.

The core concept is simple: divide your assets equally into four parts (25% each):

  • Stocks: For prosperity and growth.
  • Long-Term Bonds: For deflation and recession.
  • Cash: For recession and tight money supply.
  • Gold: For inflation and currency devaluation.

Rebalancing: You simply check it once a year. If an asset deviates too far from 25% (beyond your set threshold), you "rebalance": sell the winners and buy the losers to get back to 25%. This discipline of "selling high and buying low" is key.

FAQ

Why 4x25? ▼

It's a double meaning:
1. Permanent Portfolio: 4 assets at 25% each.
2. FIRE Movement: The 4% Rule implies saving 25x your annual expenses.

What is the best rebalancing threshold? ▼

Harry Browne suggested a 15/35 band. This means rebalancing if an asset drops below 15% or rises above 35% (effectively a ±10% threshold). This calculator defaults to ±10%, but you can adjust it.