The author gives not one, but three answers
I picked up How Much Money Do I Need to Retire? by Todd Tresidder last week on a recommendation from one of the blogs I read.
It’s a short book (designed to be read in 60 minutes or so) and an easy read. It is not very technical, but thoroughly examines the calculations that go into traditional ways to calculate retirement.
The author presents three ways of looking at the problem of retirement: the traditional way, a more nuanced way, and his own recommendation.
I really liked the author’s final recommendation, and it has given me a few ideas to tweak my plans. He favours aiming to generate passive income (in a similar way to Your Money or Your Life) to cover expenses using sources that tend to grow with inflation.
How Much Money Do I Need to Retire? is a great addition to your arsenal, and well worth getting if you are wondering whether you can pull the plug or not.
How about you? Have you figured out how much money you need to retire?
I’ve just read this. Very insightful. Particularly interesting was how market valuation at the start of your retirement affects safe withdrawal limits. A look at multpl.com (S&P 500 P/E Ratio graph) suggests it hasn’t been a good time to retire for years (the studies he talks about list the most damaging P/E being 22 and least damaging as 8.5 average).
Also, with a mix of Japanese and foreign stocks and bonds in a portfolio…maybe I should just stop thinking about it. Anyway, long time till I retire.
Yeah, I probably don’t need to think about it as much as I do just yet, but it’s good to think ahead 🙂