4 ms·
A standard rule is figure out how much you want to live on and multiply by 25. So if you want 100k per year in retirement multiply by 25 to get 2.5M needed for
by adamsmith143 4y ago
A standard rule is figure out how much you want to live on and multiply by 25. So if you want 100k per year in retirement multiply by 25 to get 2.5M needed for that income. That assumes a ~25 year retirement, so if you want to retire by 40 and live til 90 you'd need to multiply your desired income by 50. So 5.0M in that scenario. If you can live off less you can reduce the amount needed.
This assumes a 4% withdrawal rate per year.
- yodsanklai 4y agoHow do you protect your savings from inflation and market fluctuation?
- adamsmith143 4y agoWhat do you mean by savings? Do you mean cash in a Savings Account? If so you don't it's inevitable. But you shouldn't have more than a few percent of your total net worth in cash anyway. To beat inflation you invest your money, it's that simple. Investing in a SP500 index nets you something like 7-10% per year on average. That includes crashes and bull runs, so on average.