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Practical

Passive Income Calculator

Calculate the investment portfolio size needed to cover living expenses passively

Passive income from investments covers living expenses without active work. The amount needed depends on expenses and the safe withdrawal rate you apply to your portfolio.

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Tip: Build passive income streams incrementally - even 200 GBP/month from dividends or rental income reduces the portfolio size needed for full financial independence.

Fun Fact

The 4% withdrawal rule comes from William Bengen’s 1994 research showing 4% annual withdrawal from a balanced portfolio historically lasted 30+ years.

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