Retirement: If You're THIS Retiree, You Will Die Too Rich
Full disclosure - I am THIS retiree. I'm not a "die with zero" person. I hope I have a large, surplus nest egg left when I die. Why? I have an adult child with a disability who will need the financial support. When I sat down with a financial planner, the question wasn't simply, "when can I retire?" The question was, "can we retire with a suitable nest egg for our son?" I share this because I don't pay much attention to this retirement subject. Mike H. shared this with me and though it was interesting. I think it's very interesting for most or us. Most.
The retirement planning math problem we all get to is this - how much money will I need from my nest egg each month to make retirement work?
A popular way to calculate what's available each month, sort of, is the 4% rule. Take 4% of you nest egg per year, increased for inflation each year. This gives you a number that may or may not be enough to make retirement work. Depends on how much you have saved.
This video offers a less popular way to forecast your retirement spending - risk-based modern guardrails. There are on-line models for this strategy too, and he mentions one. He argues you can spend more than you think.
The other thing this video reminds us of - if you have a financial advisor, the less you spend means more income for the advisor. Does this make the advisor a bad person? Not if you think of it as a business relationship. But it's a blurry line. Ultimately they work for you.