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.
Show Outline
- Bonnie hires a professional organizer!
- Financial Independence:
- FIRE=Financial independence/Retire early
- Miss Bonnie MD’s post: Financial Independence, Early Retirement and FIRE
- Physician on FIRE’s post: Financial Independence versus Financial Freedom
- 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):
- 403(b), 401(k)
- 457(b): private vs. public
- Roth IRA
- Regular taxable account
- Pension
For more info, check out some of Bonnie’s blog posts:
Should I use my Hospitals 457b
Roth Roth Roth
Brief Update on our Finances
I know that time is your most valuable resource so I really appreciate you spending some of it with me. If you enjoyed today’s show, please share it!
If you’d like to help me improve and grow the podcast, I’d love if you could take 60-seconds to leave an honest review and rating on iTunes. Reviews and ratings are extremely helpful when it comes to the ranking of the show and I genuinely love hearing from you!
Lastly, don’t forget to subscribe to the podcast, so you won’t miss an episode!
Support the Hippocratic Hustle: