Comments on: Use The Rule of 25 to Calculate How Much You Need to Retire

By: Richard Forget

Richard Forget — Wed, 06 May 2020 00:27:58 +0000

In reply to Jackie.

That cannot be true — there must be an inflation rate on the amount of estimated funds required and assumed rate of return on the investments over the retirement years
That would say that I need the same amount of money if I was retired for 15 years as I would for 25 years of retirement

By: Jackie

Jackie — Mon, 27 Apr 2020 01:37:57 +0000

In reply to Richard Forget. The calculator takes the annual expense divided by the withdrawal rate as a percentage to get the true retirement cost of anything. It's not based on the number of years of retirement.

By: Richard Forget

Richard Forget — Sun, 26 Apr 2020 18:17:51 +0000

I assume this tool assumes a (1) number of years of retirement (90-65 = 25), (2) an estimated rate of return on funds and (3) the 4% withdrawal rate subject to an estimated increase for inflation?
What are those variables in the model? Knowing these factors I could perhaps flex the assumptions

By: April

April — Fri, 06 Dec 2019 14:15:25 +0000

Wow, great tool and very helpful to all of us! Thanks for sharing this.

By: Tyler Johnson

Tyler Johnson — Tue, 03 Sep 2019 15:42:12 +0000

That’s good information that you would need to have 25 times your yearly income for retirement. I feel like that would last you a good amount of time. Hopefully, if you spend it right then you could make it last the rest of your life.

By: Tawnya

Tawnya — Sat, 07 Jul 2018 18:12:44 +0000

Very helpful tool and article. I’m assuming these thoughts are primarily directed at those that must build their own retirement as opposed to someone who has an employer-mandated retirement, such as with teachers. With state jobs in Oregon, you must participate in the retirement program and have the option of taking the lump sum or a monthly amount for life. The benefit with the monthly amount is that it continues to be paid to you even if you use more than what your lump sum would have been, and you’ll get it until you pass away. In that regard I’m very lucky with my job.