Reasons to Exceed 25 Years of Expenses Before Retiring Story

Reasons to Exceed 25 Years of Expenses Before Retiring

Financial independence is defined as owning assets that will support your intended lifestyle for the remainder of your life.

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While those assets may include rental properties or cash flowing businesses that prov ide passive or semi-passive income, the most common scenario, particularly for high-earning professionals, is to accumulate a portfolio consisting primarily of stocks and bonds. Read More

Reasons to Exceed 25 Years of Expenses Before Retirement

A 4% withdrawal rate is going to be safe in most circumstances, but a withdrawal rate closer to 3% is more bulletproof.

The issues raised above are mostly out of your control. However, there are circumstances within your control that can change and require you to have more money.

Work a few more years after achieving financial independence and you’ll likely find yourself with an initial withdrawal rate of less than 3%.

When you decide to time your retirement not by date but rather by a portfolio value, you’re more likely to retire after the market has treated you well.

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