A good rule-of-thumb to estimate whether you have accumulate enough to retire or not is based on a magical 4% Safe Withdrawal Rate. This percentage was first came out based on the research of Bill Bengen in the 1990s. Back then, he became a financial planner not too long ago and his client have a problem of figuring out How much they need to accumulate so that they can retire?How much they can spend monthly or yearly so that they would not run out of money?How to structure their portfolio? His research was borne out of necessity but it became a rule of thumb that many in the Financial Independence Early Retirement (FIRE) space use to determine how much they need to build up towards. This week, there were two good interviews on this subject. Bill Bengen, now having sold off his financial planning practice, happily retired, spoke to Michael

Advertisements