I have tried reading about the 4% rule, but still have questions.  Am I thinking correctly in this example.  I have 1,000,000 in savings.  I am making about 3-4% return in conservitive investments.  I can withdraw 4% of 1,000,000 or $40,000 the first year and from this I pay taxes, ect. all living expenses.  Next year I can withdraw 4% + inflation of 4% = $41,600 (40000 x .04 = 1,600)  40,000 +1,600 = 41,600.  Next year it would be 41,600 x .04 = 1.664.  thus. 41,600 + 1,664 = 43,264.  Right or wrong ??  At this rate my savings should last 30 years. ??