Have Enough to Retire (Early)? 10 Steps to Make Sure
Nov 28, 2021
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Exploring retirement planning steps for financial independence, discussing dream retirement designs, tracking expenses, projecting future spending, using the bucket strategy for asset allocation, analyzing retirement income sources, and leveraging tools like Personal Capital and Notion for financial planning.
Start early and revise plans constantly for early retirement preparation.
Design dream retirement by prioritizing lifestyle changes and post-retirement activities.
Monitor current spending, forecast future expenses, and understand safe withdrawal rates for financial security.
Deep dives
Implementing Financial Independence and Retirement Early Strategies
To start, putting on your game face involves taking preparation seriously, beginning the journey by gathering essential information, especially as Fritz's writings can be overwhelming with their depth. Starting earlier is crucial as constant revision and learning is inevitable in the path towards early retirement.
Designing the Dream Retirement and Planning for the Future
Designing your dream retirement involves refining plans over time and specifying lifestyle changes. It's crucial to prioritize and order concepts leading to a detailed vision that includes activities and priorities for post-retirement life.
Tracking Current Spending and Managing Expenses
Monitoring your current spending is essential for an accurate financial overview. While it may initially be overwhelming, tools like tracking sheets and budgeting programs help categorize expenses and reveal vital spending patterns.
Forecasting Retirement Spending and Financial Projections
Forecasting retirement spending involves detailed planning for current and future expenses. Tools like retirement cash flow models aid in mapping out financial obligations over time, ensuring financial sustainability after retirement.
Determining Safe Withdrawal Rate and Retirement Income
Understanding safe withdrawal rates is vital for post-retirement financial security. It involves meticulous calculations to ensure sustainable income, considering various income streams like investments, social security, and side hustles.
Will you have enough to money to retire (early or otherwise)? Achieving financial independence requires many key elements to be in place and special consideration if you plan to retire early. You need a plan: what will you do? What will you spend? Where will it come from?
In this episode, Eric and Jason discuss a recent blog post by Fritz @ The Retirement Manifesto where he discusses the "10 Steps to Make Sure You Have Enough Money to Retire". We cover how we've been designing our "dream retirement", how we track current expenses and project future spend, how Jason is drawing down assets and Eric's evolving plan to use "the bucket strategy", and much more.
**H/T to Fritz's post "10 Steps to Make Sure You Have Enough Money to Retire", please see his article at The Retirement Manifesto: https://www.theretirementmanifesto.com/10-steps-to-make-sure-you-have-enough-money-to-retire-2/
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