I recently had the pleasure of speaking with Jasmin Suknanan at CNBC on the importance of saving for retirement.

In Ms. Suknanan’s article, one of the things she focused on was calculating how much money you’ll need to fund your retirement. 

“The 4% rule is this idea that over most historical 30-year time periods, it was found that you can withdraw 4% of your total investments each year and the money should last you at least 30 years,” Powers said. “So this is a good rule of thumb to start with when calculating how much you’ll need to save before you retire.”

 

Ms. Suknanan and I also discussed the idea of maintaining a balance, which can be especially important for families striving for early retirement utilizing a high savings rate. 

“Remember that life is a balance,” Powers said. “Balance living for today while saving for tomorrow, because we don’t know if tomorrow will come…”

As with most educational articles in financial planning, these rules of thumb are a great starting point but each family’s situation is unique.  If you’re interested in learning more about how to get truly personalized advice based on your own individual financial circumstances, goals and objectives, feel free to reach out to us to see how we can help.

And if you’d like to read the full article of my interview with CNBC, here is a link.

About the Author

Michael T. Powers, CPA, PFS, CFP® (Mike), is a flat fee-only financial planner based in Richmond, VA serving clients virtually nationwide. 

 

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