Top 5 Reasons to Retire With Less Than 25 Years of Expenses

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The reasons are legitimate, but if you’re more willing and able to be flexible or take chances and want to retire sooner

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It’s the inverse of 4%, which was determined to be a safe starting withdrawal rate by studies

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Most of the chatter around the 4% rule is that 25x may not be enough, and I clearly do not disagree.

Top 5 Reasons to Retire With Less Than 25 Years of Expenses

I prefer to think of the word “retire” as a verb. It’s something you do at least once

You can retire from corporate actuarial work and never lay eyes on another spreadsheet.

The 4% Rule (of thumb) assumes you have one pile of money to draw from for the rest of your remaining years.

What happended when he used a 5% initial withdrawal rate? The failure rate was 20%, for a success rate of 80%.

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Top 5 Reasons to Retire With Less Than 25 Years of Expenses

The reasons are legitimate, but if you’re more willing and able to be flexible or take chances and want to retire sooner

It’s the inverse of 4%, which was determined to be a safe starting withdrawal rate by studies

Most of the chatter around the 4% rule is that 25x may not be enough, and I clearly do not disagree.

Top 5 Reasons to Retire With Less Than 25 Years of Expenses

I prefer to think of the word “retire” as a verb. It’s something you do at least once

1. You Can Still Earn Money

You can retire from corporate actuarial work and never lay eyes on another spreadsheet.

The 4% Rule (of thumb) assumes you have one pile of money to draw from for the rest of your remaining years.

2. Social Security and Other Defined Benefit Plans

What happended when he used a 5% initial withdrawal rate? The failure rate was 20%, for a success rate of 80%.

3. You’re Willing to Accept a Higher than 1% Failure Rate

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