Rule #2 is also incorrect. You can make 4% on interest, so it assumes you don't

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Dec 18, 2024
10:40:00am

dYrtbYkerYder All-American

spend any of the amount you have invested, which should not be the case.

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dYrtbYkerYder

Bio page: dYrtbYkerYder
Joined: Sep 27, 2006
Last login: Dec 18, 2024
Total posts: 24,762 (159 FO)

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Messages

Author

Time

Can somebody explain retirement math to me like I'm 5?

mudpupper

10:37am

Rule #1 is a terrible rule that I had never heard before. Ignore that one.

dYrtbYkerYder

10:38am

Ignore rules 1 and 3. The second rule is based on the trinity study and 4% is

Baron

10:38am

Your money will still be making money even when you start drawing some out.

O Gaucho

10:39am

SS should be about 40-45K a year for 100K earner +4% gets you to 80% spending.

Ycrazy

10:39am

Unless you're retiring now, I would not count on a dime of SS income.

Cougarclaw

12:00pm

Even if the SS trust completely runs out of money, which it won’t, the “pay as

Junior Deputy

12:07pm

your assumption is that the SS program will stay the same as it is now

Cougarclaw

1:07pm

The program will absolutely stay as it is now unless Congress changes it. Thats

Junior Deputy

1:13pm

Rule #2 is also incorrect. You can make 4% on interest, so it assumes you don't

dYrtbYkerYder

10:40am

it assumes you are making about 8% annually, which is actually a safe bet if

SalmonOfCapistrano

10:42am

to add: the point is you will never run out of money, and will also keep up

SalmonOfCapistrano

10:43am

Wow, I'd LOVE to make 8% annually in retirement but that seems risky.

BleedCougarBlue2

10:49am

If those are your numbers today and you are 65, you can expect to get about $40k

Submariner

10:42am

Rule #1 is dumb. You should anticipate what your retirement expenses will

Buffalo

10:42am

Yes 4%+social security. 3/4% rule assumes life expectancy of 25-30 more years

CougieMcCougFace

10:42am

Also I’ve heard 25X salary at retirement

CougieMcCougFace

10:45am

These rules of thumb are lazy.

jsaskew

10:47am

For retirement math, I suggest working backwards. How much income do you want to

TheNerd

10:50am

Yes, I can (didn’t read body of post). See this quarter? Daddy needs lots of

Nikomedes

10:50am

Don't take retirement money guidance from USA Today.

kccougar

10:52am

You are missing social security that will get you to 70% to 80%

maYbe

10:54am

Just win the lottery, no problems

BYU Grounds

10:55am

First, estimate how much you’ll need to cover your expenses.

Junior Deputy

10:55am

Is it wise to depend on SS at all? Depending on your age I guess.

deejo

10:57am

First rule. You aren't 5. There are so many variables.

BYU71

11:03am

Put at least 15% away for retirement and you will be just fine.

Adwight

11:30am

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