Q. Is there a rule of thumb I could use to determine how much do I need to retire?
A. Yes, the rule of thumb is you need 25 times of the amount you need to spend in your retirement time.
For example, you figured out you will need $100,000 per year to live a comfortable retirement life. Your annual social security income is $60,000. So you will need 25*$40,000 = $1,000,000 to retire. In other words, you can withdraw 4% per year from it to support your retirement life without incurring the risk of running out of money when you are still alive.
A. Yes, the rule of thumb is you need 25 times of the amount you need to spend in your retirement time.
For example, you figured out you will need $100,000 per year to live a comfortable retirement life. Your annual social security income is $60,000. So you will need 25*$40,000 = $1,000,000 to retire. In other words, you can withdraw 4% per year from it to support your retirement life without incurring the risk of running out of money when you are still alive.
RSS Feed
