Graham - (1) How do you see this rule changing if you receive a higher RoR through Real Estate? (2) The missing piece for me is how to best withdraw money once retired, to avoid taxes and fees? I would love an article on this topic as you always do thorough research. It would also help us readers pre-plan our investing if there are withdrawal benefits in different areas of investments. Thanks!
Based on all my readings it seems like a variable approach might be more suitable i.e. take out more when you're younger (between 3.5-5.5%) and less (2.5-3.5%) as you get older if/when SS and/or pensions kick in. It might average out to around 4% but gives you flexibility over 20-30 years
Also, figure out things that you enjoy that you can be paid for adding/creating value. In today's world of internet access, there's no reason you can't monetize your passions in retirement.
I live in India where we largely need to fend for ourselves, and keeping costs low plus spending conservatively from the corpus are critical to successful financial management.
My view: people will need >$5 million in the USA given where social security and Medicare stand ...
I’ve always been shooting for 3 million invested by retirement, I figure if my investments can continue to average 10% + then that gets me $300k on average to spend with out touching the goose laying the eggs l, except in a down or bad year.
But it’s interesting to look at it from this perspective as a worst case scenario. Makes me want to shoot for 5-6 million.
While not a retirement funding problem per-se, some folks who learn how to be frugal learn this lesson *too* well, and cannot enjoy the fruits of their savings. Your Point #2 early in your presentation about spending too little.
In other words, they've taught themselves to be so frugal that they hoard the money that they worked so hard to save up -- rather than enjoying their well-earned retirement.
This thought is what concerns me when I read articles like this that talk about the 4% rule and how maybe it's now 3-1/2 % or even 3%. Sure, you don't want to overspend and get yourself in trouble, but unless the market flat out tanks for the next few decades 4% should be just fine.
I'm not trying to second guess the well-written article, it's just that I've been seeing a lot of talk like this recently and, while useful, it likely adds to the FUD that folks negotiating managing their retirement savings are already dealing with.
Graham - (1) How do you see this rule changing if you receive a higher RoR through Real Estate? (2) The missing piece for me is how to best withdraw money once retired, to avoid taxes and fees? I would love an article on this topic as you always do thorough research. It would also help us readers pre-plan our investing if there are withdrawal benefits in different areas of investments. Thanks!
I like that you and Ben Felix are connected!
Based on all my readings it seems like a variable approach might be more suitable i.e. take out more when you're younger (between 3.5-5.5%) and less (2.5-3.5%) as you get older if/when SS and/or pensions kick in. It might average out to around 4% but gives you flexibility over 20-30 years
Also, figure out things that you enjoy that you can be paid for adding/creating value. In today's world of internet access, there's no reason you can't monetize your passions in retirement.
Excellent article. Thank you.
I live in India where we largely need to fend for ourselves, and keeping costs low plus spending conservatively from the corpus are critical to successful financial management.
My view: people will need >$5 million in the USA given where social security and Medicare stand ...
I’ve always been shooting for 3 million invested by retirement, I figure if my investments can continue to average 10% + then that gets me $300k on average to spend with out touching the goose laying the eggs l, except in a down or bad year.
But it’s interesting to look at it from this perspective as a worst case scenario. Makes me want to shoot for 5-6 million.
Excellent article Graham! Aplause
While not a retirement funding problem per-se, some folks who learn how to be frugal learn this lesson *too* well, and cannot enjoy the fruits of their savings. Your Point #2 early in your presentation about spending too little.
In other words, they've taught themselves to be so frugal that they hoard the money that they worked so hard to save up -- rather than enjoying their well-earned retirement.
This thought is what concerns me when I read articles like this that talk about the 4% rule and how maybe it's now 3-1/2 % or even 3%. Sure, you don't want to overspend and get yourself in trouble, but unless the market flat out tanks for the next few decades 4% should be just fine.
I'm not trying to second guess the well-written article, it's just that I've been seeing a lot of talk like this recently and, while useful, it likely adds to the FUD that folks negotiating managing their retirement savings are already dealing with.
Please do a video on dividend investing bro!
There are some very interesting perspectives in this article. Thanks for sharing.