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The 4% rule

The 4% rule

Have you wondered how much you need to save for retirement? Let's explore the "4% rule" - a simple guideline for retirement planning.

The 4% Rule Explained:

  • In retirement, spend 4% of your savings each year
  • Your savings should last about 30 years
  • Example: $1 million saved = $40,000 yearly retirement income

How to reach your savings goal:

  • If you're 30 and want to retire at 65 (35 years to save):
    • For $1 million: Save about $650 per month
    • For $1.5 million: Save about $975 per month

Starting later?

  • At 40: Save $1,400/month for $1 million by 65
  • At 50: Save $3,600/month for $1 million by 65

Key takeaways:

  1. Start saving early - it gives your money time to grow
  2. Be consistent - even small amounts add up over time
  3. Adjust your plan as needed - these numbers are guidelines, not rules

Next steps:

  1. Start saving now, even if it's a small amount
  2. Increase your savings when you can
  3. Consider talking to a financial advisor for personalized advice

Remember, the best time to start saving was yesterday. The second best time is today.

#RetirementPlanning #FinancialFuture #SavingTips