The Game Plan
You’ve most likely heard plenty of “rules” you’re supposed to follow to retire successfully. Some of these rules are stated so confidently, that you’d be crazy not to immediately accept them as fact.
But we don’t mind the threat of being called crazy, so let’s dive into some of the most popular retirement “rules of thumb” to see if they truly lead us down the path of good financial guidance or run a chance of leading us astray.
Join us on today’s episode as we break down these rules of thumb:
- The Rule of 100: A risk tolerance rule that tells us investors should have a percentage of investments that match 100 minus his or her current age. [3:25]
- The Rule of 72: You take 72 divided by the current interest rate and that’s how fast your money will double. [8:30]
- Rule of 5: On average we experience a bear market every 5 years. [ 9:49]
- The 4% Rule: You should be able to take out 4% of your portfolio each year of retirement without running out of money. [12:05]
So, are these rules really wise or is there a better and more customized approach to retirement planning out there? Times change and so does the advice we should listen to. Listen to today’s episode and find out!