Do you know how much money you’ll need to retire happy?
Use this guideline to find out:
Use this guideline to find out:
It’s called the 4% rule.
Basically it serves as a guideline that suggests you can withdraw 4% of your portfolio each year of retirement without ever running out of money.
This is assuming your money is invested in a portfolio that averages more than 4% annual returns.
Basically it serves as a guideline that suggests you can withdraw 4% of your portfolio each year of retirement without ever running out of money.
This is assuming your money is invested in a portfolio that averages more than 4% annual returns.
To find out how much you really need to retire, do this:
- Add up your monthly expenses and multiply by 12 to get your yearly total
- Then multiply your yearly expenses by 25
Once you reach that number, you should theoretically have a portfolio they can pay all your bills.
- Add up your monthly expenses and multiply by 12 to get your yearly total
- Then multiply your yearly expenses by 25
Once you reach that number, you should theoretically have a portfolio they can pay all your bills.
Here’s a simple chart showing how the math would work for different financial goals:
The 4% rule is widely used by financial planners as a rough rule of thumb for how much you’ll need to retire.
For those who want more financial security throughout retirement, you can do the same math but only using 2-3% to calculate your total.
For those who want more financial security throughout retirement, you can do the same math but only using 2-3% to calculate your total.
For me personally, my goal is to get to $2.5 million invested so that I can assume a $100k a year salary coming from nothing more than my portfolio.
Sounds like the dream and a ticket to financial freedom!
Sounds like the dream and a ticket to financial freedom!
We all dream of the ability to retire early.
Now you know how much money you need before you can! If you found this thread helpful or informative then:
- Follow me @LTI_finance
- Like & Retweet this
• Subscribe to my free newsletter
MarkTalksMoney.com
Now you know how much money you need before you can! If you found this thread helpful or informative then:
- Follow me @LTI_finance
- Like & Retweet this
• Subscribe to my free newsletter
MarkTalksMoney.com
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