2 ms·

> Would change one’s approach to retirement and savings if you knew how long you needed money for… Popular wisdom amongst early retirement groups is you need 2

by fy20 5y ago

> Would change one’s approach to retirement and savings if you knew how long you needed money for… Popular wisdom amongst early retirement groups is you need 25x your annual spending to retire indefinitely. This figure is based on average stock market returns, so as long as you take out less than you earn each year you are golden. Some years it won't do so well, others it'll do better, but overall you should be safe. https://www.madfientist.com/safe-withdrawal-rate/ https://www.madfientist.com/safe-withdrawal-rate/

vidarh 5y ago
Yes, but that is based on not knowing how long you'll live, which means you can't risk eating much into your capital. But if you somehow could know exactly how long you'll live, it could be adjusted accordingly, and especially as you get closer. E.g. to take an extreme example: If you know you only have 10 years left, then obviously you could just keep your money as cash to avoid market risks, and spend 10% each of your remaining years. Even if it's not 100% certain, if you were able to get a very precise estimate, there'd be room for a lot better annuity rates on offer for people with a shorter life expectancy.