The Secret to Early Retirement: The 4% Rule
Taking the guesswork out of withdrawal rates!
One of my favorite questions to ask people when we get on the topic of personal finance is — how much money do you think you need to retire?
Most people have no idea…and that’s scary.
Retirement planning should not be a play on “hoping things work out”. You should have a plan for a specific retirement number you’d like to hit.
Once you figure out what your ideal retirement # is, you’ll need to decide “how much” is a safe withdrawal rate….this is where the 4% rule comes into play.
Considered by many financial experts as the key to early retirement, the 4% rule is a simple concept that can help you plan your finances and achieve financial independence — at the age you actually want to retire vs. being forced to retire at 75 because you didn’t plan for the future!
In this post, we’ll deep dive into the details of the 4% rule and how it can pave the way toward a(mostly) worry-free retirement (from the perspective of personal finance, at least).
Understanding the 4% Rule in Retirement Planning
In short, the 4% rule is a financial guideline suggesting that if you withdraw 4% of your…