The market is going to provide your retirement, ready get set, go.
A woman in my circles recently was concerned about her target early retirement date 12 years away.
She figured she would retire on 700k in the market because according to established folklore a 4% withdrawal rate would give her the $28k per year she is currently spending.
But wait, she said. Wouldn't my purchasing power be eroded by 2% inflation and 12 years from now, wouldn't I need like 2% of 700k or $14k times 12 years, or almost another $170k in additional savings.
A woman in my circles recently was concerned about her target early retirement date 12 years away.
She figured she would retire on 700k in the market because according to established folklore a 4% withdrawal rate would give her the $28k per year she is currently spending.
But wait, she said. Wouldn't my purchasing power be eroded by 2% inflation and 12 years from now, wouldn't I need like 2% of 700k or $14k times 12 years, or almost another $170k in additional savings.
I could hear her exasperation in her words.
Here's another thought. Take the above scenario and then add this picture. (pic below)
It's your target date, and it's the year 2000. Now the market takes another 12 years to break even after a two consecutive multi year drops.
Is it wise to put your life off for a future that is completely out of your control.
Regardless of how many cheerleaders there are during a bull market.
Sooner or later some of you will hit the lottery of the above scenario. Will it be you.
How much better to have the skills to help you cope survive and prosper in any scenario. Reach out if that resonates.
Here's another thought. Take the above scenario and then add this picture. (pic below)
It's your target date, and it's the year 2000. Now the market takes another 12 years to break even after a two consecutive multi year drops.
Is it wise to put your life off for a future that is completely out of your control.
Regardless of how many cheerleaders there are during a bull market.
Sooner or later some of you will hit the lottery of the above scenario. Will it be you.
How much better to have the skills to help you cope survive and prosper in any scenario. Reach out if that resonates.
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