Personal Finance
Would it be Possible we need to Save Much Less for Retirement?
By Investment Moats  •  December 2, 2018
Suppose you need to spend $40,000/yr the next year for your family. Based on the proverbial 4% Safe Withdrawal Rate, you would need to accumulate $1 million in order to seriously think about whether both spouse could both retire or not. The 4% withdrawal rate is tested through historical rolling 30 year periods, on a 50% equity 50% bonds allocation. 4% gives a high probability your money would last 30 years. It is inflation adjusted and therefore preserve your purchasing power. So could we use this to evaluate we are ever ready to not work? In yesterday’s New York Times article, a 35 year financial planning veteran presents some real life contrast to using the simple 4% withdrawal rate. Read The Myth of Steady Retirement Spending, and Why Reality May Cost Less From his observation, financial planner Neal Van Zutphen wishes to highlight the following:
  1. Your spending tends not to ...
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By Investment Moats
Investment Moats is set up by Kyith Ng and have been around since 2005. He aims to share his experiences making sense of money, how money works and ways to grow his money. It hopes that by sharing his experiences, both good and bad, season investors can advice and critique his decisions and new investors can learn from them and find their own style ...
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