Read? Time is your bff for retirement planning
How much you’ll need
A good rule of thumb is the replacement rate (or replacement ratio), which is calculated in this way:
Replacement rate = income after you retire / income before you retire
The recommended replacement rate varies from around 60 to 80%.
Hmm ....
It looks like Uncle8888 has to deploy his war chest sooner to catch up with the recommended replacement rate towards the higher end.
CW,
ReplyDeleteOn guard for a poke OK?
How much you need per month AFTER retirement you need a formula to tell you?
You don't trust your own feet? Trust a ruler more to tell you what shoes would fit better?
You already got 3 years of monthly expenses AFTER retirement tracked and pasted to powerpoint. What's the point of doing that if you can rely on this "theoratical" one-size-fits-all formula?
Eh?
P.S. I just know if AFTER retirement I want a wine, women, and song lifestyle, no money is ever enough. If I herbivore (not interested in sex), then I need a lot less... LOL!
Trust but verify - SMOL
ReplyDeleteData points to verify theoretical formula by FAs Vs actual and measuring our own feet.
What is the variance?
:-)