Episode 152: Saving (and Investing) Rate for Retirement

Send us Fan MailYou may have heard recommendations that range anywhere between 10% and 50% when it comes to how much of your income to save for retirement. I often recommend saving a min of 20% of gross income to physicians who plan to invest primarily in stock and bond index funds. How do you know what saving rate you need in your situation? What it comes down to is how many years you save (and invest) for retirement prior to withdrawing from the portfolio to fund retirement and how large of a portfolio is necessary to support the level of spending you desire to have once you are retired. The other factor is how long of a retirement you are expecting, which is a bit variable since no one really knows at what age they will die. If you plan on working until you are 65, you probably don’t need to plan for a 40 year retirement but there is a possibility you could live to age 105. In this episode, I first do some calculations at various savings rates based on a $350,000 income, which is around the current average income for a physician. I think discuss Wade Donald Plau’s research on Safe Savings Rates.This is an episode where it may be helpful to read the information and look at the chart. You can find a blog version of this week's podcast episode at https://www.growyourwealthymindset.com/blogPfau, Wade Donald, 2011. "Safe Savings Rates: A New Approach to Retirement Planning over the Lifecycle," MPRA Paper 28796, University Library of Munich, Germany.https://ideas.repec.org/p/pra/mprapa/28796.html You may also want to check out the blog article based on this episode, which can be found at https://www.growyourwealthymindset.com/blogPlease subscribe and leave a review on your favorite Podcasting platform. Get 12 Financial Mistakes that Keep Physicians from Building Wealth at https://www.growyourwealthymindset.com/12financialmistakesIf you want to start your path to financial freedom, start with the Financial Freedom Workbook. Download your free copy today at https://www.GrowYourWealthyMindset.com/fiworkbookDr. Elisa Chiang is  a physician and money coach who helps other doctors reach their financial goals by mastering their money mindset through personalized 1:1 coaching .You can learn more about Elisa at her website or follow her on social media.Website: https://ww.GrowYourWealthyMindset.comInstagram https://www.instagram.com/GrowYourWealthyMindsetFacebook https://www.facebook.com/ElisaChianghttps://www.facebook.com/GrowYourWealthyMindsetYouTube: https://www.youtube.com/c/WealthyMindsetMDLinked In: www.linkedin.com/in/ElisaChiang Disclaimer: The content provided in the Grow Your Wealthy Mindset Podcast...