The 4 percent rule… It’s arguably one of the most highly debated figures in retirement planning. Since its inception in 1994 by Bill Bengen, it seems as though you can find just as many people who love it as those who hate it. Why so much fuss over one tiny, little number? Because of what it stands for! Planning your nest egg size using the right safe withdrawal rate figure can mean the difference between playing with fire during retirement or having 100% confidence that you’ll never run out of money. But if you pick a number that is too conservative, it can also mean the difference between trying to save up for a $2 million dollar nest egg instead of a $1 million dollar one. Obviously it would be great if we didn't have to … [Read more...] about What is the Best Safe Withdrawal Rate for Retirement?
4 percent rule
When it comes to your retirement savings, how do you know when enough is enough? According to an article from CNBC, a global investment management firm surveyed investors and you know what they came up with? An average retirement nest egg of $2.5 million! That’s how much they believe it will take to have the same quality of life they’re enjoying today. As I found out first hand at a lunch outing with a friend, this sort of belief is all too common! But what if it’s not at all true? What if you really sat down and actually figured out how much do I need to save for retirement and concluded … … it could be much, much less! Perhaps you’re already a lot closer than you think! Here’s my lunch story … You Think … [Read more...] about How Much Do I Need to Save for Retirement? Probably Much, Much Less Than You Think!
Sometimes when it comes to financial advice, you don’t want a lot of fluff. You just want someone to tell you like it is – straight and to the point. Not a whole bunch of “maybe this, maybe that”. That aspect is what I loved about the Smartest Retirement Book You’ll Ever Read by Daniel R. Solin - definitive and conscience advice! So far I’ve already written two separate posts highlighting pieces of advice in this book. But there’s actually a lot more to it. Solin has JAMMED PACKED this book full of useful knowledge. The information it contains could be appreciated by both newbies as well as intermediate/advanced investors. Here’s some of the more important tidbits you can take away from The Smartest Retirement Book: … [Read more...] about Book Review: The Smartest Retirement Book You’ll Ever Read by Daniel R. Solin
When you’re finally ready to retire and start accessing your money, mainstream advice says to follow the 4 percent rule. For anyone who doesn’t know, the 4 percent rule says you can start your retirement by withdrawing 4 percent of your total retirement portfolio to live on, and then doing the same each year thereafter with small adjustments for inflation. Research suggests that you’ll have a pretty good chance of success for about the next 30 years. Although this method is very popular for retirement income planning, there have been some studies to that show you can do better! … [Read more...] about Retirement Income Planning with Author Daniel Solin