Ep 36: Should You Follow These Popular Retirement Rules of Thumb?

You've most likely heard plenty of "rules" you're supposed to follow to retire successfully. Some of these rules are stated so confidently, 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. As you'll hear us talk about on the show all the time, every individual needs a plan tailored to their specific needs so while these rules are good for providing some direction, they aren't necessarily applicable to you. Here's some of what you'll learn on this episode: The rule of 72 is great for determining the amount of time to double your money based on returns. (2:32) The rule of 100 doesn't give you a true sense of how much risk you should be taking on. (5:24) Why we totally disagree with rule that you need 75% of your working income in retirement. (6:48) Why it's not accurate to assume that you need 10 times your salary saved by the time you're 67. (17:05) The 4% rule has been for withdrawing money in retirement has been a good guideline but it doesn't hold up now. (20:00)   Contact: If you have any questions, call 215-513-4330 or visit https://www.kempharvest.com/