Are you saving for retirement? How much do you need to become financially independent? Learn all about the basics of retirement spending in another episode of Friends Talk Finance: Retirement Planning. Thanks for listening! If you have any questions, please send them our way.
- Bonnie hires a professional organizer!
- Financial Independence:
- Calculate your 4% goal
- You want your money to outlive you in retirement, you don’t want to run out
- How do you decide how much money to save?
- The 4% rule
- William P. Bengen, October 1994
“Determining withdrawal rates using historical data”– Link to full text of the article
“Based on analysis of worst case scenarios since 1926“Assuming a minimum requirement of 30 years of portfolio longevity, a first-year withdrawal of 4 percent… followed by inflation-adjusted withdrawals in subsequent years, should be safe. In no past case has it caused a portfolio to be exhausted before 33 years, and in most cases it will lead to portfolio lives of 50 years or longer.”
- Retirement account types (for employed):
For more info, check out some of Bonnie’s blog posts:
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