How much do I need to retire?

Question

Accepted Answer

A common starting point is the 4% rule: multiply the annual retirement spending you need from your portfolio (above Social Security and any pension) by 25. So $40,000 a year of portfolio spending implies roughly $1,000,000. It is only a rough guide — your real number depends on your retirement age, longevity, investment returns, taxes, and how flexible your spending is. A Monte Carlo projection on your actual numbers gives a more reliable success probability.

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