FIRE stands for Financial Independence, Retire Early. The core idea is to build a capital base large enough for its returns to cover living costs, without depending on a salary.

How large a capital do I need?

It depends on your annual living costs and the withdrawal rate you plan for. A common way to estimate the target capital is to divide annual costs by the withdrawal rate you are comfortable with, for example 4 percent. Use the calculator above to test different scenarios.

Is the 4 percent rule reliable?

The 4 percent rule is a historical rule of thumb, not a guarantee. It is based on simulations of long-term US market data and does not account for fees, taxes or the composition of an individual portfolio. Many choose a lower withdrawal rate for extra margin.

Should I live off dividends or sell units?

Both strategies require the same thing: a sufficiently large capital base. Dividends provide a natural cash flow but limit the selection to dividend-paying companies. Selling units regularly gives access to the full return but requires you to manage the withdrawals yourself.

Which account type suits withdrawals best?

Both an investment savings account (ISK) and an endowment insurance (KF) are taxed at a flat rate regardless of withdrawals, which makes ongoing withdrawals simpler than on, for example, a regular share and fund account, where each withdrawal can trigger capital gains tax.

Is Amos Value suitable for this strategy?

Amos Value E (Dist) pays out a portion in cash every year, which provides a regular cash flow. The fund invests in quality companies with stable cash flows, bought with a margin of safety. Risk level 4 out of 7 on the European SRI scale, meaning medium risk. As with all equity saving, the value fluctuates in the short term, and the recommended holding period is at least five years.

Saving goal

Living off dividends

Living off the returns of an invested capital base, sometimes called FIRE, means building a capital large enough for its returns to cover ongoing living costs. It requires disciplined saving and a withdrawal rate the capital can actually sustain, over the time it takes to grow there.

What it takes to live off your capital

Your capital works for you

Living off dividends or returns means the capital itself generates the income you would otherwise get from a salary. It requires a sufficiently large capital base and a withdrawal rate the capital can sustain over time, held in a portfolio built to withstand both upturns and downturns. The earlier you start, the more time the capital has to grow before the withdrawal phase begins.

The withdrawal rate determines sustainability: A withdrawal rate that is too high risks eroding the capital, especially during downturns early in the withdrawal period.
Dividends or total return: Some choose to live only off dividends, others sell units regularly. Both approaches require the same thing: a sufficiently large capital base.
Inflation erodes withdrawals: A withdrawal that is not adjusted for inflation loses purchasing power year by year. Our calculator accounts for this.

Calculate your dividend

Want to combine several saving goals or see other scenarios? Try the full savings calculator

Guide

How to build capital you can live off

Reaching a point where returns cover your living costs requires a clear plan rather than a single successful investment. Four factors determine how quickly and how sustainably it happens.

The withdrawal rate (the 4 percent rule): A common starting point is that an annual withdrawal of around 4 percent of the capital has historically had a good chance of holding up over long periods. It is a rule of thumb, not a guarantee. The withdrawal rate should be adapted to the portfolio composition, time horizon and market conditions.
Sequence of returns risk: Sharp downturns early in the withdrawal period do more damage than the same downturn later, since withdrawals are then made from an already-reduced capital base. Entering the withdrawal phase with a well-composed portfolio reduces that risk.
Dividends versus selling units: Living off dividends provides a natural cash flow without selling units, but limits the selection to dividend-paying companies. Selling units regularly gives access to the full return, both price appreciation and dividends, but requires you to manage the withdrawals yourself.
ISK and KF simplify withdrawals: In an investment savings account or an endowment insurance, holdings are taxed at a flat rate regardless of withdrawals, which makes ongoing withdrawals simple without triggering capital gains tax on each sale.

The building blocks

Three parts make up the withdrawal strategy

Being able to live off your capital rests on three parts working together: the size of the capital, how it is composed and how much is withdrawn each year.

Size of the capital

The target capital is determined by your annual living costs and the withdrawal rate you plan for. The lower the withdrawal rate, the larger the capital required.

Portfolio composition

A portfolio of quality companies with stable cash flows offers better odds of withstanding downturns during the withdrawal phase.

Withdrawal rate

How large a share of the capital you withdraw each year determines how long it lasts, and whether it even shrinks over time.

Launches 6 July 2026

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Available platforms

You can now invest in Amos Value E (Dist), our distributing share class. Choose the platform you already use.

Amos Value E (Dist)

ISIN: SE0029302207

Part of the fund's value is paid out to you in cash each year, giving you a regular cash flow from your savings.

Not sure which suits you? Read more about the share classes →

More platforms will be added continuously

Past performance is not a guarantee of future returns. The money invested in the fund may increase or decrease in value and you may not get back the full amount invested. Read the fund's key information document and prospectus before investing.

Common questions about living off dividends

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3 Aug 2026Monthly letter

Living off dividends

Your capital works for you

How to build capital you can live off