How Target Index Funds work?

Say I’m 38, no debt, with 1.3mil in target index fund and following 4% rule, only live off 44k per year, would the rest of the investment returns reinvest and still build? Only if stock market is up correct?

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Thank you for the question @Lunger2006!

Here is a PFC post on the 4% rule for your reference:

4% is the safe withdrawal rate. Meaning if you take 4% of your portfolio per year (adjusted for inflation), you have a very very low chance of running out of money. If you take less than 4% a year, you not only have a zero historical chance of running out of money, you have a higher chance of letting your portfolio grow over time.

Let us know if you have any other questions!